Investing.com - Gold futures traded near a three-month high in North America trade on Tuesday, as retreating oil prices and losses in global equity markets underpinned demand for assets perceived as safer.
Global stock markets plunged as oil prices fell back towards the $30-level, adding to fears over the outlook for global growth.
Gold for April delivery on the Comex division of the New York Mercantile Exchange rose to an intraday peak of $1,131.50 a troy ounce, the most since November 3, before trading at $1,128.80 by 15:15GMT, or 10:15AM ET, up 80 cents, or 0.08%.
A day earlier, gold rallied $11.60, or 1.04%, as weak U.S. manufacturing data added to speculation the Federal Reserve may slow any planned interest rate hikes.
Market participants are anticipating just one more rate hike this year, compared with four according to Fed policymakers' guidance. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
Prices of the precious metal ended January with a gain of 5.4%, its biggest monthly rise in a year, as investors sought refuge from turmoil in global equity markets. Gold is often seen as an alternative currency in times of global economic uncertainty and a refuge from financial risk.
Also on the Comex, silver futures for March delivery dipped 1.8 cents, or 0.13%, to trade at $14.32 a troy ounce during morning hours in New York.
Elsewhere in metals trading, copper edged lower amid ongoing worries over the health of the global economy, especially China.
The red metal lost 3% in January as investors slashed copper holdings amid persistent worries over an economic slowdown in China. The Asian nation is the world’s largest copper consumer, accounting for nearly 45% of world consumption.