Gold fell for a second straight session on Tuesday, as risk sentiment improved following U.S. President Donald Trump's decision to delay tariffs on the European Union.

Spot gold fell 1.2% to $3,302.10 an ounce by 2:03 p.m. ET (1802 GMT) after rising nearly 5% last week.

U.S. gold futures settled 1.9% lower at $3,300.40.

"There's a lot of volatility in gold prices because we keep getting changes on tariffs. Right now, the market is probably under the impression that there's a deal to be reached and that's weighing on gold," said Bart Melek, head of commodity strategies at TD Securities.

A weekend phone call between Trump and EU chief Ursula von der Leyen provided "new impetus" to trade talks, the EU said, after Trump dropped his threat to impose 50% tariffs on EU imports next month.

The U.S. dollar strengthened and stock index futures jumped. A stronger dollar and improved risk sentiment weighed on gold, a dollar-denominated asset that is typically favored during periods of economic and geopolitical uncertainty.

Federal Reserve Bank of Minneapolis President Neel Kashkari called for interest rates to be held steady until there is more clarity on how higher rates affect inflation.

Minutes from the Fed's latest policy meeting are due on Wednesday. Key U.S. economic data scheduled for release this week include the first-quarter GDP estimate, weekly jobless claims and the core PCE price index.

"Our long-term bullish view on gold remains unchanged. Once the market is convinced that the Fed is going to cut, gold will start to perform," Melek added.

Zero-yielding bullion tends to perform well in a low-interest-rate environment.

Elsewhere, spot silver fell 0.4% to $33.21 an ounce, platinum fell 0.1% to $1,084.02, and palladium fell 1.2% to $975.49.(alg)

Source: Reuters