Gold Tuesday declined as a rally in equities, curbed demand for the metal as a protector of wealth while a weaker dollar capped the losses.

Gold lost USD 1.30, or 0.1 per cent, to USD 1,245.20 an ounce on the Comex in New York. Bullion in London was 0.2 per cent lower at USD 1,243.28.

The dollar fell against the euro and European equities climbed to a four-month high, as regulators gave banks eight years to comply with new capital rules and a report showed Chinese industrial output rose the most in three months.

Gold, which usually moves inversely to the greenback, is 1.7 per cent below a record. Europe’s economy may grow almost twice as fast as previously forecast this year, the European Commission said.