Mubasher: Gold prices stabilised earlier on Tuesday, after a rebound in risk-taking sentiment sent the precious metal below a key level of $1,500 per ounce in the preceding session, Reuters said.

This came amid anticipations for meetings by policymakers later this week, as market participants were looking for hints on the forward trajectory for interest rate cuts.

By 6:40 am GMT, spot gold was little changed at $1,497.07 per ounce, having dropped by 1.2% on Monday, below the $1,500 threshold, while US gold futures fell by 0.3% to $1,507.80 per ounce.

At 7:46 am GMT, spot gold rose by 0.22% to $1,499.21 per ounce, while gold futures went down by 0.13% to $1,509.70 per ounce.

“Investors have gained some more confidence about the growth outlook and that weighs on gold,” CMC Markets chief strategist Michael McCarthy was quoted by Reuters.

Prospects for additional stimulus measures are growing following reports about the Chinese central bank was moving to reduce interest rates for corporates, while Germany was poised to raise fiscal spending.

Moreover, the US dollar hovered near a three-week peak as an improvement in risk-taking appetite gave a push to US government bond yields.

By 7:53 am GMT, the US dollar index, a tracker of the greenback against a basket of six peers, ticked up by 0.05% to 98.40.

In the meantime, market focus is on minutes from the Federal Reserve’s July policy meeting due later on Wednesday, while investors were awaiting the US central bank’s annual symposium due later in the week, looking for hints on monetary policy path.

However, “the downside momentum suggests we may be one positive trade headline away from testing $1,490, which could trigger a dash for the exits,” a note by VM Markets managing partner Stephen Innes was quoted by the news agency.