)
Gold fell on Tuesday as global markets rebounded from the previous day's rout after China cut interest rates to stimulate its wavering economy, with European stocks rising 4.5 per cent and the dollar up one per cent versus the euro. Autocatalyst metal palladium continued to slide, however, falling as much as seven per cent to its lowest in five years.
Spot gold was down 0.6 per cent at $1,147.26 an ounce at 1151 GMT, while US gold futures for December delivery were down $6.60 an ounce at $1,147.00.
Gold had edged lower on Monday, with some traders citing liquidation to cover losses on other markets, but largely held its ground after a plunge in Chinese equities sent world stocks and commodity prices tumbling and knocked the dollar.
Gold has rebounded sharply from the 5-1/2 year low it hit in July on the back of expectations the Federal Reserve was on track to raise interest rates this year for the first time in nearly a decade, lifting the opportunity cost of holding gold while boosting the dollar.
Palladium fell to a low of $528.50 an ounce, its weakest since September 2010, and was later down 2.7 per cent at $555.47. "Platinum group metals have noticeably been lagging in recent weeks, failing to benefit more from gold's rebound," UBS said in a note.
