Investing.com - Gold futures slipped from the prior session’s eight-month peak in Europe trade on Tuesday, but losses were limited as steep declines in global equity markets continued to support demand for safe-haven assets.
Gold for April delivery on the Comex division of the New York Mercantile Exchange shed $10.40, or 0.87%, to trade at $1,187.50 a troy ounce by 07:55GMT, or 2:55AM 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 growing 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.
Japan’s Nikkei 225 lost 5.4% as the U.S. dollar briefly collapsed below the 115-level against the yen to its lowest since November 2014, as anxiety over slowing growth and falling oil prices spurred demand for the Japanese currency, another safe haven.
U.S. and Japanese sovereign bond prices surged on Tuesday, with yields on Japan 10-Year falling below zero for the first time in history.