Gold recovered on Tuesday as bargain-hunters stepped in after prices hit a more than one-week low in the previous session, pressured by a U.S.-China tariff truce that lifted appetite for riskier assets and dented bullion's safe-haven appeal.

Futures in the precious metal fell 3.75% as the agreement to lower tariffs increased risk-on sentiment in markets.

Gold prices dropped over 3% to $2,228 per ounce after a temporary tariff rollback between the U.S. and China reduced the metal's appeal as a safe-haven ass