Gold steadies on Fed pause hopes, equity recovery

BENGALURU, Jan 15 (Reuters): Gold prices held steady on Tuesday, supported by market expectations of fewer interest rate hikes in the year by the US Federal Reserve, while a bounce in Chinese equities stoked interest in riskier assets.
Spot gold edged about 0.1 per cent lower to $1,290.80 per ounce at 0401 GMT, while US gold futures were unchanged at $1,291.4 an ounce. "We will see market resistance until we see some catalyst that will give some boost to safe haven assets," said Kyle Rodda, a market analyst at IG, Australia.
"Markets are sitting on their hands and waiting for more information about the subjects that matter to them."
Asian stocks recovered on Tuesday after Beijing signalled more supportive measures to stabilise a slowing economy, and emphasised that China is seeking a strong start in the first quarter.
Meanwhile, the dollar weakened on heightened expectations the Fed will hold off on raising rates this year due to a slowdown in global growth. Gold tends to gain on expectations of lower interest rates, as they reduce the opportunity cost of holding non-yielding bullion.
Spot gold looks neutral in a range of $1,285-$1,299 per ounce, and an escape could suggest a direction.