Gold rose for the first time in three sessions on Tuesday, adding 1.5 percent, as fears in the market boosted haven demand on the metal and other refuges.
The precious metal hit a high of $1234.78 an ounce, while currently trading around $1232.60 from the opening at $1215.22.
Asian shares tumbled as investors’ risk averse soared as oil prices resumed drop and Federal Reserve officials said market expectations were more pessimistic than the U.S. central bank.
Crude oil fell for a tenth straight session on Tuesday, hitting a low of $35.22 a barrel on fading hopes the Doha meeting later in the month would come out with an output freeze deal.
Iran will continue boosting its production until reaching its pre-sanctions levels, Iran’s oil minister Bijan Zanganeh told Mehr news agency at the weekend.
“Market expectations are pricing in a 20 percent likelihood of things deteriorating from here … financial market expectations are more pessimistic than ours,” Chicago Fed President Charles Evans said on Tuesday.
Later in the week, investors will look for further clues about the path of interest rate hikes by the Federal Reserve by scrutinizing FOMC minutes for March’s policy meeting.
Gold took advantage last week from the dovish comments from Fed Chair Janet Yellen this week, as she signaled the Fed would be cautious regarding raising interest rates this year.
The dollar index, which tracks the green currency’s movements, traded near its lowest level in five month at 94.65.
The yen took the lead in the currency market, climbing to a 17-month high versus the green currency, hitting a peak of 110.29.
