Gold advanced for a second session in three on Tuesday as a wobbly outlook for the global economy burnished bullion's safe-haven appeal, with holdings at the top gold fund at their highest in four months. Weak data from the United States to China and Europe dragged Asian equities into the red, boosting outlook for gold which has climbed 8 percent so far in 2015 after a two-year slide.
"I think the sentiment on gold has changed from a very bearish tone last year which was due to expectations of higher US interest rates," said Yuichi Ikemizu, branch manager at Standard Bank in Tokyo. Spot gold was up 0.4 percent at $1,279.20 an ounce by 0651 GMT, after trading nearly flat in Asian morning hours. US gold for April delivery gained 0.2 percent to $1,279.70 an ounce. Rising inflows into gold funds underlined how some investors are bullish on bullion. Holdings at SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, stood at 24.65 million ounces on Monday, the highest since October.