20.08.201906:57:00UTC+00Gold Rises Above Key $1,500 Level

Gold prices rose on Tuesday after declining more than 1 percent the previous day on improved risk appetite amid talk of more stimulus from central banks and signs of a possible thaw in the ongoing trade war between the world's two largest economies.

Spot gold rose around half a percent to $1,503.74 per ounce, after falling over 1 percent to slip below the key level of $1,500 on Monday, its biggest single-day loss since July 19. U.S. gold futures were up 0.2 percent at $1,514.15 an ounce.

The dollar held firm, boosted by slightly higher Treasury yields, as stimulus efforts in China and Germany coupled with a decision by the Trump administration to give Chinese telecom giant Huawei another 90 days to buy equipment from American suppliers helped calm fears of a brewing global recession.

The focus now shifts to the minutes of the U.S. Federal Reserve's last meeting due out on Wednesday as well as Fed Chair Jerome Powell's speech at the Jackson Hole symposium on Friday as investors look for clues to what the U.S. central bank may do next.

The Group of Seven (G7) leaders' summit will be held this weekend in France and it remains to be seen whether there will be a joint communique amid wide gaps between member nations on trade and climate issues.