Gold edged higher as the dollar weakened on bets for a pause in Federal Reserve tightening and more stimulus from China.

European stocks and US futures bounced amid a bullish mood in broader markets, weighing on the greenback and boosting gold. Traders are studying the prospect of a broad set of measures from Beijing to aid China's economic recovery, which could have implications for global growth.

Fed officials gather later Tuesday for their June meeting, where they're expected to keep interest rates steady for another month. That may be complicated by the release of the US consumer price index print for May, though economists see it showing inflation continuing to wane.

Bullion has traded in a relatively tight range this month between about $1,940 and $1,980 an ounce, after falling in May amid easing fears of US bank-crisis contagion and the resolution of the debt-ceiling crisis. The metal has found recent support on speculation that the Fed is nearing the end of its aggressive monetary-tightening cycle.

Spot gold rose 0.2% to $1,962.52 an ounce as of 9:12 a.m. in London after losing 0.4% in the prior two sessions. The Bloomberg Dollar Spot Index slipped 0.2%. Silver, platinum and palladium gained.

Source: Bloomberg