Gold gains glitter again as equity panic spreads

Gold retreated from a 12-week high hit on Tuesday as equities and oil recovered from an earlier rout, but concerns over market volatility kept the market in positive territory ahe-ad of a Federal Reserve meeting.

Chinese shares slum-ped six per cent while oil prices slid to under $30 a barrel, sending gold to a peak of $1,117.60 an ou-nce as spooked investors sought alternative assets.

Its glitter later dimmed a bit as stocks steadied and oil swung back into positive territory, but it remained higher, suppor-ted by technical signals after closing on Monday above its 100-day moving average.

Gold has risen five per cent in January as concerns over China and global growth hurt equities. It is continuing to take direction from stocks, Saxo Bank’s head of commodity research Ole Hansen said.