Gold is currently below a seven-week high at $1,151.40 (-0.19%). It posted a decline on Monday after five sessions of gains, which were generated by a collapse in equity markets worldwide and concerns over China's economy. However today some Asian stock indices rebounded, although U.S. indices dropped sharply.

"Gold should continue to hold its value during the current market turbulence, however a material surge higher is unlikely as participants find liquidity by selling all asset classes, including precious metals," MKS Group trader James Gardiner said. However expectations of a rate hike in the U.S. still weigh on bullion. Atlanta Fed President Dennis Lockhart said Monday that he still believes that the central bank will raise its benchmark rate this year.