"However, there should not be much downward pressure after the pullback as the U.S. Fed will not raise interest rates anytime soon." It fell 0.8 percent on Monday, its biggest decline in nearly two weeks, to close at $1,354.85.U.S. BENGALURU: Gold on Tuesday held near lows touched in the previous session as Asian stocks rallied and markets assessed whether the latest U.S. jobs data has boosted the prospects for an interest rate hike by the U.S. Federal Reserve Spot gold was little changed at $1,354.45 per ounce by 0430 GMT. It was down 0.9 percent at $1,089.45 an ounce.Palladium was down 0.8 percent at $616.85 an ounce. Kansas City Federal Reserve President Esther George on Monday said U.S. interest rates are too low and signalled she could be ready to restart her push for rate hikes within the Fed's rate-setting committee.Lower rates tend to boost gold prices because they cut the opportunity cost of holding non-yielding bullion while weighing on the dollar, in which it is priced.

Source: Economic Times July 12, 2016 07:07 UTC