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Gold Subdued As Equities Rebound

Gold prices were slightly lower on Tuesday as equity markets gained ground on expectations of fewer interest rate hikes this year by the Federal Reserve and amid hopes that China would unveil more measures to support its weakening economy.

Spot gold was marginally lower at $1,288.84 per ounce while U.S. gold futures were down 0.2 percent at $1,288.90 an ounce.

Global risk sentiment improved somewhat after Citigroup earnings beat Street views and China pledged to keep monetary policy stable to support growth.

Chinese finance ministry said that it would implement larger tax and fee cuts to help reduce burdens for small firms and manufacturers.

Separately, Chinese central bank said that it would stick with its prudent monetary policy to stabilize a slowing economy.

The dollar held weak on heightened expectations the Fed will halt its monetary tightening policy this year amid rising risks of a sharper economic slowdown.

The material has been provided by InstaForex Company – www.instaforex.com