Gold retained overnight losses to trade below $1,300 an ounce on Tuesday, as safe-haven demand for the metal was curbed by an apparent easing of tensions in Ukraine that boosted equities and the dollar.
Spot gold was flat at $1,297.50 an ounce by 0027 GMT, after dropping 0.6 percent in the previous session. U.S. gold slipped 30 cents to $1,299. U.S. and European stock prices surged on Monday, taking a leading U.S. equities index to a 14-year high, as investors breathed easier over the Ukraine crisis and knocked oil prices to lows not seen in more than a year.
Equity markets got a boost after Russian Foreign Minister Sergei Lavrov said all issues around a humanitarian convoy sent by Moscow to relieve needy areas of eastern Ukraine had been resolved. Moscow said it would like a ceasefire to allow aid to get to people trapped by the fighting.