Gold climbed to $1,091.60 ( 0.23%) amid growing demand for safe-haven assets as Asian stocks fell and the International Monetary Fund cut its global economic forecast. The IMF released its updated World Economic Outlook on Tuesday projecting the global economy to grow 3.4% in 2016 down from 3.6% expected earlier. The fund also says the world economy expanded by 3.1% in 2015, marking the weakest pace since the 2009 recession. The Chinese economy is expected to grow by 6.3% this year.
Weak physical demand limited bullion's gains as buyers from one of the major consumers China cut spending amid slowing economy.