Gold prices eased on Tuesday, as a slightly firmer dollar and optimism over a potential ceasefire between Russia and Ukraine dampened investor demand for safe-haven assets.

Spot gold was down 0.4% at $3,215.31 an ounce, as of 0210 GMT. U.S. gold futures slipped 0.5% to $3,218.40.

The dollar slightly recovered after touching a more than one-week low in the prior session, making greenback-priced gold less appealing to holders of other currencies.

"We are seeing the knee-jerk response to the U.S. credit downgrade wear off and there's some hope of a truce between Ukraine and Russia," Capital.com's financial market analyst Kyle Rodda said.

U.S. President Donald Trump spoke with President Vladimir Putin on Monday and said Russia and Ukraine will immediately start negotiations toward a ceasefire.

"We are seeing buyers emerge on dips below $3,200. However, I think we are due a bigger pullback, especially if there's further easing in geopolitical risks and we see upward pressure on yields building from U.S. fiscal policy." Rodda added.

Gold, which is considered a safe asset amid geopolitical and economic uncertainties, has hit multiple record highs this year and is up about 23% so far this year.

U.S. Federal Reserve officials on Monday took on cautiously the ramifications of the latest downgrade of the U.S. government's credit rating and unsettled market conditions as they continued to navigate a very uncertain economic environment.

Moody's cut the United States' rating to "Aa1" from "Aaa" on Friday, citing rising debt and interest "that are significantly higher than similarly rated sovereigns".

Several Fed officials are scheduled to speak later in the day, potentially providing further insights into the economy and the central bank's policy path.

Markets are now pricing in at least 53 basis points of rate cuts this year, with the first reduction expected to begin in October.

Spot silver fell 0.3% to $32.25 an ounce, platinum rose 0.3% to $1,000.71 and palladium lost 0.1% to $973.74.

(Reporting by Anushree Mukherjee in Bengaluru; Editing by Sherry Jacob-Phillips)