Gold dropped $22.10, or 1.28 percent, to close at $1,699 per troy ounce, the lowest close in a month. Silver shed 77 cents or 2.28 percent to reach $32.99.
The dollar was mixed in Asia and lower in Europe -- with the exception of the Swiss franc, the dollar rising to 0.9267 francs from 0.9256.
The dollar index dropped 0.25 percent to 79.68 on the International Exchange. The dollar fell to 81.92 yen from Monday's 82.25 yen.
The euro rose to $1.3092 from Monday's $1.3053. The British pound rose to $1.6096 from $1.6091.