Gold reclaims $1,500 mark as focus turns to Fed

BENGALURU, Aug 20 (Reuters): Gold prices rose above $1,500 an ounce on Tuesday, following the previous session's steep fall, as focus shifted to US Federal Reserve policy statements and growth concerns.

Spot gold was up 0.8 per cent to $1,506.65 per ounce by 1112 GMT, after falling to a near one-week low of $1,492.10 on Monday. US gold futures gained 0.3 per cent to $1,515.80 an ounce.

"This is a rebound after prices dropped for the last few days because the sentiment was improving in the financial markets and short-term traders took some profits after the (recent) rally," Julius Baer analyst Carsten Menke said.

"However, fundamental backdrop for gold remains very supportive," he added, citing the ongoing trade dispute between the United States and China and a potential interest rate cut from the Fed.

Equity markets around the world gained as hopes for stimulus in major economies tempered fears of a global recession.