Gold holds steady at Rs412,136 per tola

Internationally, spot gold fell 0.5% to $3,928.49 per ounce by 12:11 pm ET (1711 GMT), after declining as much as 1% earlier in the session to a low of $3,893.31. Similarly, US gold futures for December delivery slipped 0.8% to $3,938.90 per ounce.

The stronger dollar and higher Treasury yields weighed on bullion, making the non-yielding metal less attractive to investors. "The dollar has been strengthening, and yields are going higher," said Phillip Streible, Chief Market Strategist at Blue Line Futures.

Adnan Agar, Director of Interactive Commodities, said international gold prices were fluctuating between $3,895 and $3,970 per ounce, reflecting continued uncertainty in the market.

He said investors were closely watching the US midterm election results, adding that their implications for gold could become clearer over the next one to two days as the outcome would determine which party secured a majority.

Agar said gold could remain under pressure in the near term, while a sustained move above $4,080 and $4,150 levels could bring some stability to the market. However, if prices failed to recover, bullion could potentially decline towards $3,700 per ounce, he warned.

Meanwhile, oil prices fell around 2% to a three-week low on Tuesday as traders assessed diplomatic efforts to end the wars in Ukraine and Iran against concerns over further supply disruptions following attacks in both conflicts. The decline in oil prices eased some inflation concerns, offering temporary support to bullion before gold resumed its downward movement.

In the domestic market, silver prices declined Rs120 to Rs5,368 per tola. Meanwhile, the rupee gained Rs0.01 against the US dollar to close at Rs276.71, compared with Monday's close at Rs276.72.