FX.co ★ Gold Holds Steady As Dollar Eases

Gold prices held steady on Tuesday as the dollar index inched down slightly after hitting a 20-year high in the previous session.

Spot gold edged up 0.1 percent to $1,712.21 per ounce, while U.S. gold futures were virtually unchanged at $1,722.90.

The dollar index dipped on improved risk sentiment after Chinese policymakers pledged to make renewed efforts to boost its COVID-hit economy.

China announced a slew of measures, including increased debt issuances and infrastructure spending to shore up the flagging economy.

China's central bank slashed the amount of foreign-exchange deposits banks need to set aside as reserves for the second time this year in a bid to support tumbling yuan.

Earlier in the day, Australia's central bank raised its cash rate to the highest level since 2015, saying it remained committed to returning inflation to the 2-3 percent range over time while keeping the economy on an even keel.

The European Central Bank meets on Thursday, with economists expecting another outsized rate hike to fight soaring inflation.