Investing.com - Gold futures held near the prior session’s eight-month high in North America trade on Tuesday, as steep declines in global equity markets continued to support demand for safe-haven assets.
Japanese equities slid over 5%, while markets in Europe and the U.S. extended declines, as concerns surrounding global growth and weak oil prices continued to grip markets.
Gold for April delivery on the Comex division of the New York Mercantile Exchange dipped $3.80, or 0.32%, to trade at $1,194.10 a troy ounce by 14:40GMT, or 9:40AM ET.
On Monday, gold rallied to $1,201.40, a level not seen since June 19, before falling back to close at $1,197.90, up $40.20, or 3.47%.
Prices of the precious metal have been well-supported in recent sessions amid indications global economic and financial headwinds could make it tough for the Federal Reserve to raise interest rates as much as it would like this year.
Attention now shifts to Fed Chair Janet Yellen, who is scheduled to deliver her semiannual testimony to Congress on Wednesday, amid ongoing uncertainty over the U.S. central bank's ability to raise interest rates.
Market participants are anticipating just one more rate hike this year, most likely in December, compared with four according to Fed policymakers' guidance.
Gold prices are up almost 12% so far this year as investors seek safe havens in the face of mounting instability in other financial markets. The yellow metal is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.