Gold futures headed higher for a second straight session on Tuesday, as the U.S. dollar edged back, helping to extend gains for the precious metal which has been partially supported by worries stemming from a downturn in China’s property market.
Traders also are positioning ahead of a Federal Reserve policy statement and interest-rate projections at the conclusion of the two-day meeting on Wednesday.
“The potential for a financial contagion inside China, ongoing infection issues in China, significant global equity market declines and the potential for significant Chinese stimulus provide the gold bulls with plenty of ammunition,” analysts at Zaner said in a note Tuesday.
rose $10.90, or 0.6%, at $1,774.70 an ounce, following a 0.7% rise on Monday, which halted a three-session skid.
Keeping bullion’s gains in check was a rebound in…