SINGAPORE Spot gold edged higher on Tuesday, snapping two sessions of decline, as concerns over China's economic growth and pressure on stock markets lifted the precious metal.
* Spot gold XAU= firmed 0.2 percent to $1,095.6 an ounce by 0037 GMT, while U.S. gold futures GCcv1 eased 0.1 percent to $1,095.2.
* Right from the beginning of 2016, markets have been rocked by plunges in Chinese stocks, the yuan's fall and subsequent heavy intervention by the Chinese authorities.
* The chaotic moves have led to worries China's economy may be in for tough time rather than stabilising as some had hoped.
* China is the world's biggest consumer of gold at around 1,000 tonnes a year.
* The yellow metal is often seen as an alternative investment during times of financial uncertainty, although safe-haven rallies tend to be short-lived.
* The gain in gold prices is likely to be capped by concerns that higher U.S. interest rates would lower demand for the non-interest-paying asset, while boosting the dollar. The Fed raised rates in December and attention has shifted to how many hikes will follow in 2016.
* Atlanta Federal Reserve Bank President Dennis Lockhart said there may not be enough fresh data on inflation to support another U.S. interest rate hike by March.
* Holdings of the world's largest gold-backed exchange-traded fund, New York-listed SPDR Gold Shares, rose 0.69 percent on Friday, data from the fund showed.
* Asian shares hovered near four-year lows and oil prices languished at near 12-year lows on Tuesday as investors fretted over whether Beijing may be losing control of the economy.
(Reporting by Naveen Thukral; Editing by Ed Davies)
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Published Date: Jan 12, 2016 07:00 AM | Updated Date: Jan 12, 2016 07:00 AM