Gold resumed its rise for a second straight session on Tuesday to hit its highest since November, as the sell off in stocks enhanced some haven demand on bullion.
The precious metal climbed to a high of $1117.54 an ounce, while currently trading around 1113.55, compared to the session’s opening at $1108.08.
Asian shares tumbled after a two-day rally, as oil prices dropped to revive worries of slow growth and low inflation.
The Shanghai Composite index edged down 6.42 percent to end the session at 2,749.79, the lowest since December 2014.
Brent crude dropped for a second consecutive session to trade around $30.40 a barrel, where it continued to face pressure after it hit a high of $33.48 on Monday.
Fed meeting
Eyes will focus on the Federal Reserve’s two-day meeting starting on Tuesday, where analysts predict policymakers to focus on the challenges stemming from emerging markets.
The Fed is predicted to leave interest rates at 0.25-0.50 percent, where the volatile start of this year will probably prompt the Fed to postpone adapt a slow rate increase path.
Forecasts that the Fed would hike its interest rate in March have dropped, putting some pressure on the U.S. dollar.
The dollar retreated against a basket of major currencies to hit a low of 99.18, after setting a high of 99.65 the previous session, according to the dollar index.
The drop in the dollar encouraged some demand on bullion as an alternative investment.
