Gold futures on the COMEX division of the New York Mercantile Exchange declined slightly on Tuesday, as investors cashed in their profits after two straight days of rally. A stronger dollar also added to the negative tone.

The most active gold contract for April delivery edged down 0.7 dollars, or 0.04 percent, to settle at 1,684.9 dollars per ounce.

Analysts said although morning trading initially saw gold almost once again reach the 1,700-dollar-an-ounce level, the precious metal ultimately settled at a little under Monday's value after investors opted to take the profit from gold position. Gold has hiked for two straight trading days, gaining more than 40 dollars.

The Tuesday release of the U.S. Consumer Confidence and S&P/ Case-Shiller Home Price Survey were both weaker than expectations. Consumer Confidence for March came in at 70.2, down from February' s reading of 71.6, while home prices in January fell 0.8 percent to their lowest level in nine years.

Analysts said that the release of both reports sent the dollar higher against rival currencies, therefore putting slight pressure on gold.

The dollar's gain Tuesday was also a stark reversal of Monday's developments, where comments from U.S. Federal Reserve Chairman Ben Bernanke expressing doubts on the U.S. labor market recovery had sent gold up 1.4 percent at the expense of the greenback.

Silver for May delivery fell 13.4 cents, or 0.41 percent, to close at 32.616 dollars per ounce. April Platinum settled at 1,657. 5 dollars per ounce, up 10.8 dollars, or 0.7 percent.