Precious-Gold hovered near two-month on Monday after recording its best run of weekly gains since September 2012 as worries in emerging economies and poor performance in the equity market enhanced haven demand on the metal.
The shiny metal soared 1.3 percent last week after the fall in equities and on worries of a slowdown in China.
Throughout the previous five weeks, the yellow metal has gained 5.4 percent after falling to the lowest in six months on Dec. 31 on Chinese physical demand due to the Lunar New Year holiday.
Data released last week showed that China’s manufacturing reported an unexpected contraction in January, raising concerns the world’s second biggest economy may face an ease in growth.
U.S. shares tumbled the most since June on Friday, recording its weakest for benchmark indexes since 2012 on woes from emerging economies.
Political woes from Turkey, India and Thailand as well as currency devaluation in Argentina have stoked concerns the main engine for global recovery may lose steam this year.
The focus is predicted to be on the Fem meeting on Jan. 28-29 as it would decide the pace at which policymakers would scale back stimulus.
Expectations are in favor of seeing a cut in bond purchases by another $10 billion for the second time in six weeks during this week’s meeting.
The Fed decided on Dec. 18 to cut $10 billion of its monthly bond purchases to $75 billion starting from January until nothing by the end of 2014.
However, the Fed has referred that the pace of stimulus reduction would depend on the improvement in the economy.
Meanwhile, the yellow metal is trading around $1266.86 an ounce after hitting a high of $1278.25 and a low of $1266.21, where the metal probably halted its gains after hitting resistance near $1280 levels.
The U.S. dollar rose versus a basket of major currencies to hover around 80.57 after hitting a low of 80.47.
Crude oil for March’s delivery was little changed to trade near the session’s opening around $96.92 a barrel.