Gold slipped in early trade on Tuesday to trade near a 3-1/2 week low hit a day earlier, as prices remained under pressure on expectations that the U.S. Federal Reserve will increase interest rates as early as June.

Spot gold edged down 0.1 percent to $1,247.30 per ounce by 0056 GMT. The metal fell to $1,242.63 an ounce, the lowest since April 28 on Monday.

U.S. gold futures  dipped 0.3 percent to $1,248 per ounce early on Tuesday. U.S. rates being kept too low for too long could cause financial instability in future and stronger market expectations for a rate rise are "probably good", St. Louis Federal Reserve President James Bullard said on Monday.Content this no 9827808090

SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, rose 0.38 percent to 872.52 tonnes on Monday.