Gold fell on Tuesday as the dollar and equity markets rose after data showing China's weakest economic growth in years fanned stimulus hopes, spurring investors towards riskier assets.
The world's second-biggest economy grew 6.8 percent in the fourth quarter, the slowest rate since 2009, the data showed. For 2015 as a whole China's growth came in at 6.9 percent, the weakest in 25 years.
"Gold is drifting lower in response to renewed demand for stocks following the Chinese data overnight," Saxo Bank's head of commodity strategy, Ole Hansen, said.
Spot gold was slightly lower after a lethargic session on Monday when U.S. markets were shut for the Martin Luther King holiday. U.S. gold for February delivery settled at $1,089.10 per ounce, down $1.60.