Gold prices were flat to slightly lower on Tuesday and the dollar index edged up slightly as global stock markets sank led by a heavy sell-off in Chinese and Hong Kong shares.
The dollar index hovered near a 3-1/2-month peak, making gold more expensive for holders of other currencies.
Spot gold was virtually unchanged at $1,797.58 per ounce, after hitting a session low of $1,792.00. U.S. gold futures were down 0.1 percent at $1,796.95 per ounce.
Asian stocks hit their lowest this year as investors fled Chinese tech stocks, bonds and currencies amid concerns over Beijing's sweeping crackdown on companies ranging from education firms to the technology sector.
European markets lost ground and U.S. stock futures traded lower in early pre-market trade ahead of earnings from big tech companies.
A two-day policy meeting of the U.S. Federal Reserve gets underway later today, with investors waiting to see how the central bank will balance fast-rising prices with the complication of increased coronavirus infections.
The Fed's policy statement will be issued at 1800 GMT on Wednesday, followed by a news conference by Fed Chairman Jerome Powell.