Gold prices traded lower on Tuesday after jumping to within striking distance of the key $2,000 level last week.
Spot gold dipped 0.3 percent to $1,966.08 per ounce while U.S. gold futures were down half a percent at $1,977.25.
Gold is consolidating under five-month high after reports emerged that the U.S. is pressing Israel to delay its ground offensive in the Gaza Strip to allow time for the release of hostages and shipments of aid into Gaza.
Israeli officials have not formally given a timeline as to when a potential ground assault would take place.
The dollar was up slightly, after having hit a one-month low on falling Treasury yields.
Amid rising macroeconomic headwinds, investors await key U.S. economic data this week and next week's Federal Reserve's monetary policy meeting for direction.
This week's U.S. economic calendar includes reports on new home sales, durable goods orders, pending home sales, initial jobless claims and third-quarter GDP.
The Commerce Department is due to release its report on personal income and spending this week, which includes readings on inflation said to be preferred by the Federal Reserve.
Business activity surveys out of Asia and Europe released earlier today painted a sluggish picture of the global economy.
