old prices edged higher on Tuesday drawing some safe-haven bids from risk-averse investors as Asian stocks fell amid worries over a potential slowdown in China’s economic growth and as the dollar eased against the yen.
Spot gold was up 0.3 percent at $1,190.65 an ounce at 0355 GMT. On Monday, it fell 1.2 percent, its biggest one-day percentage fall since Aug. 15, and also touched a more than one-week low of $1,183.19.
U.S. gold futures rose 0.5 percent to $1,194.40 an ounce.
“Gold is getting s
ome support from bargain hunting and also some safe haven support on concerns of a potential sell-off in equities,” said Stephen Innes, APAC trading head at OANDA in Singapore.
“I strongly believe the market is underpricing the potential for equity markets to derail. This is a key hedge for gold in my view.”
Asian shares hit 17-month lows on Tuesday as China allowed its currency to slip past a psychological bulwark amid sharp losses in domestic share markets, a shift that pressured other emerging currencies to depreciate to stay competitive.
The dollar slipped against the yen in Asia on Tuesday on simmering anxiety about higher U.S. bond yields, the Sino-U.S. trade war and political turmoil in Europe.