Gold gives up gains

Reuters

Singapore

Gold reversed early gains on Tuesday, dropping despite a decline in dollar and equities, as investors remained cautious ahead of policy meetings this week at the Bank of Japan and the U.S. Federal Reserve.

The U.S. dollar fell versus the yen as traders took profits from the greenback's recent rally against the Japanese currency.

Expectations of a dovish Fed also hurt the dollar. Asian stocks retreated as investors were wary of riskier assets ahead of the central bank meetings.

Spot gold eased 0.3 percent to $1,234.16 per ounce by 0653 GMT, after gaining 0.3 percent earlier in the session.

"The metal continues to be influenced to a large extent by dollar movements," said HSBC analyst James Steel, adding that he expects gold to reach $1,300 this year.

"As well as a weaker dollar, we see global risks and a modest recovery in oil prices as gold-bullish.