Gold prices rose on Tuesday, to extend recovery for the second day from a 6-week low, lifted by strong safe-haven demand, amid concerns over the Evergrande Company crisis and ahead of the US Federal Reserve meeting.

Gold prices fell rose 0.2% to $1,768.20 an ounce, after opening at $1,764.60, and hit a high of $1,757.93.

Gold closed higher by 0.5% yesterday, after hitting 7-week low at $1,742.02 an ounce.

Otherwise, China's real estate giant Evergrande continues to face a disastrous debt default scenario, which could destabilize many economic sectors in China, maid concerns about the integrity of the Chinese real estate and credit markets.

The Fed will convene later today to decide on monetary policy and provide clarity over the future of its decision in light of the recent economic data, amid expectations to keep the interest rate at 0.25% unchanged.

The markets are anticipating the Fed’s next step, especially after the release of mixed economic data, while the central bank hinted to start reducing its bond-buying before the end of this year, which is an essential step before an interest rate hike.

Gold stocks at the SPDR ETF remained unchanged yesterday, with the total at the highest since August 25 at 1001.66 metric tonnes.

Euro gained ground against major rivals on Tuesday ahead of the Federal Reserve's policy meeting. 

The European Central Bank decided recently to maintain interest rates and assets purchases program, however it intends to cut back on coronavirus-related bonds purchases in accordance to inflation finance rates.

The Federal Reserve is convening today and tomorrow to decide on interest rates and US monetary policies.

Global Central Banks are giving out more bullish signals in response to increasing inflation rates, and we might start to see a wave of policy tightening worldwide.

Otherwise, China's real estate giant Evergrande continues to face a disastrous debt default scenario, which could destabilize many economic sectors in China.

EUR/USD rose 0.1% as of 04:48 GMT to 1.1732, with an intraday low at 1.1724.

US stock indices fell on Monday, amid focus on the pandemic's latest developments, concerns about the Chinese economy, and ahead of the Federal Reserve meeting.

The Fed will convene tomorrow to decide on monetary policy and provide clarity over the future of its decision in light of the recent economic data.

The US Treasury Secretary Janet Yellen warned that failure to raise the debt ceiling may lead to delays in critical payments in October.

As for Evergrande, the world's most indebted real estate developer, doubts about the Chinese company's ability to meet its obligations have raised concerns about the integrity of the Chinese real estate and credit markets.

The People's Bank of China has injected about 90 billion Chinese yuan ($14 billion), in attempts to ease global markets' concerns about the world's second largest economy.

WTI crude October futures fell 2.3% or $1.68, and closed at $70.29 a barrel.

Brent November futures fell fell 1.79% or $1.42, to $73.92 a barrel.

As for stocks, Dow Jones fell 1.8% or 614 points, and closed at 33,970, and hit a day high of 34,459, and a low of 33,613.

S&P 500 fell 1.7% or 75 points to 4,357, after hitting a high of 4,402 and a low of 4,305.

Nasdaq fell 2.2% or 330 points to 14,713 points, with a high of 14,841 and a low of 14,530.

Gold prices rose on Monday, as the US dollar held against most of its peers.

The Fed will convene tomorrow to decide on monetary policy and provide clarity over the future of its decision in light of the recent economic data.

Uncertainty about the Fed’s next steps continues, especially after the release of mixed economic data, including slowing inflation and rising retail sales, while the central bank hinted to start reducing its bond-buying before the end of this year.

The US Treasury Secretary Janet Yellen warned that failure to raise the debt ceiling may lead to delays in critical payments in October.

The dollar index rose against a basket of major currencies by 0.1% to 93.2 points as of 18:03 GMT, after hitting a high of 93.4 points and a low of 93.1 points.

Gold spot prices rose 0.7% to $1,763.6 an ounce as of 18 :03 GMT.