Gold continues to recover ahead of Fed's meeting

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.