Gold edged higher on Tuesday, snapping two sessions of decline, as concerns over China's economic growth and pressure on stock markets rekindled the safe-haven status of the precious metal. Spot gold firmed 0.1 percent to $1,095 an ounce by 0633 GMT, while US gold futures eased 0.2 percent to$1,094. "For gold, I'm looking for a bearish case at $950 an ounce, driven by higher Fed fund rate to 1.25-1.5 percent and overall dollar strength," said OCBC Bank analyst Barnabas Gan.

"Still, gold behaves like a safe haven at this juncture given risk aversion on Chinese equity markets and low oil prices." China's main stock indexes each dropped more than 5 percent on Monday. Oil prices have fallen to new 12-year lows, as concerns over China hurt commodity prices broadly. 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.

Copyright Reuters, 2016