On Tuesday gold prices remained just below $1,500 an ounce in Europe as the US dollar increased against the euro offsetting the positive impact of rising risk aversion fuelled by uncertainty over plans to roll over Greek debt.

Spot gold was trading at $1,497.45 an ounce at 0923 GMT, against $1,495.54 late in New York on Monday. U.S. gold futures for August delivery GCv1 rose $15.90 an ounce to $1,498.40.

The euro declined as the US dollar appreciated on worries over China’s economy and concerns that the US companies will pull back their dollars earned overseas.

According to reports in Chinese media Beijing may rise rate while Moody’s says the local government debt in China is much higher than previously reported by local auditors.

"Uncertainty with respect to the Greece aid package is helping bullion to cling on to the $1,500 zone," said Pradeep Unni, senior analyst at Richcomm Global Services.

"Technical charts however suggested lack of momentum in bullion. Isolated demand from the physical markets is unlikely to provide considerable support. In the near term, there seems to be a greater possibility of bullion being dragged lower to the near-term support of $1,460 or lower."