Gold is currently at $1,128.30 (+0.10%) holding on to a three-month high amid strong demand for safe-haven assets on the background of falling stocks and oil prices. Physical demand rose in China ahead of the Lunar New Year holiday proving support for prices.

"A weaker US dollar, lower oil and fragile equity markets are in combination good for gold. We remain bullish as the economic trends do not argue for lower bullion in our view," HSBC analyst James Steel said.