* Investors monitor news on stimulus measures
* U.S. Fed rate increase back in focus
(Updates prices, adds comment)
By Clara Denina
LONDON, July 12 (Reuters) - Gold fell for a second straight
day on Tuesday as global equities rallied on easing political
uncertainty in Britain and hopes for more economic stimulus,
which in turn curbed demand for assets perceived as a safe
haven.
Spot gold XAU= fell as much as 1.1 percent to $1,340.26 an
ounce in earlier trade and was down 0.9 percent at $1,342.96 an
ounce by 1434 GMT, after also losing around 1 percent on Monday.
"Tensions in Britain are easing for now, as the country will
soon have a new prime minister," ActivTrades chief analyst Carlo
Alberto de Casa said.
"With the British pound gaining some ground, demand for gold
and other safe havens is decreasing," he said, adding that the
next support level for gold would be around $1,340.
Gold has gained about $100 an ounce since the United Kingdom
voted to leave the European Union, with worried investors piling
their cash into safe-haven assets.
However, Asian stocks hit a 2-1/2 month peak on Tuesday and
European and U.S. shares were on track for another day of gains
on hopes of more stimulus from global policymakers. MKTS/GLOB
"The additional stimulus packages will continue to create a
challenging environment for investors looking for a return
because they are not getting it through bonds and as long as we
have that scenario, then the alternatives are currently stocks
but also precious metals," Saxo Bank senior manager Ole Hansen
said.
Japan's ruling coalition fanned expectations of more fiscal
stimulus, while the Bank of England could cut rates as soon as
Thursday following its monthly policy meeting.
Markets were also assessing whether the latest U.S. jobs
data has boosted the prospects for an interest rate increase by
the U.S. Federal Reserve.
Gold came under pressure after strong U.S. non-farm payrolls
data on Friday boosted some expectations for a U.S. rate rise.
Kansas City Federal Reserve President Esther George said on
Monday that U.S. interest rates were too low and signalled that
she could be ready to resume her push within the Fed's
rate-setting committee for increases.
Lower rates tend to boost gold prices because they cut the
opportunity cost of holding non-yielding bullion while weighing
on the dollar, in which the metal priced.
"Not too long ago, gold prices would have withered on
prospects of higher stock prices, but not this time around;
investors are thinking that the spate of monetary easing is
likely to persist for some time to come, keeping both gold and
equities fairly well supported," INTL FCStone said in a note.
The European Central Bank will not ease monetary policy any
further at its meeting next week, according to an overwhelming
majority of respondents in a Reuters poll of euro money market
traders.
Silver XAG= was up 0.5 pct at $20.37 an ounce.
Platinum XPT= , which rose to a 13-month high of $1,104.10
on Monday, fell for the first time in two weeks, down 1.2
percent at $1,097.60.
Palladium XPD= rose 1 percent to $627.60.
(Additional reporting By Nallur Sethuraman in Bengaluru;
Editing by David Goodman and William Hardy)