Gold edged higher on Tuesday approaching towards its highest level in 6 months as projections grow that Fed will ease its hawkish interest rate rise that may consequently impact the greenback.

Gold wrapped up 2022 with a slump, where predictions hovers around the possibility of taking advantage from Fed's slow hikes that may take place in 2023.

Spot gold nudged up 0.4% at 1,831.67 per ounce while gold futures jumped 0.6% to $1,837.85 per ounce. The two main gauges were on the verge of touching its highest-level last June.

The spotlights this week are shed on Fed's minutes this week that is scheduled to be released this Wednesday, with anticipation from the markets on whether Fed will ease its rate raises this year or not.

China have seen unexpected surge in Covid-19 cases post recently loosening its curbs which quashed some hopes of a near revive of the Chinese economy.