Gold prices rose on Tuesday as the dollar’s rally paused, but prices held close to a 2½-year low on expectations of further policy tightening by the U.S. Federal Reserve in its efforts to quell soaring inflation.

Spot gold gained 0.6% at $1,631.89 per ounce, as of 0103 GMT. Prices hit their lowest level since April 2020 at $1,620.20 on Monday.

U.S. gold futures rose 0.3% to $1,638.1.

The dollar index dipped 0.2% easing off a two-decade peak hit in the previous session.

Fed officials on Monday sloughed off rising volatility in global markets, from slumping U.S. stocks to currency turbulence abroad, and said their priority remained controlling domestic inflation.

Rate hikes increase the opportunity cost of holding bullion, which pays no interest, while boosting the greenback.

Global economic growth is slowing more than it was forecast a few months ago in the wake of Russia’s invasion of Ukraine, as energy and inflation crises risk snowballing into recessions in major economies, the OECD said on Monday.

China’s net gold imports via Hong Kong jumped nearly 40% to an over four-year high in August, data showed on Monday, as demand continued to rebound in the world’s biggest consumer of the metal.

Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.40% to 943.47 tons on Monday from 947.23 tons on Friday.

Spot silver was up 1% at $18.52 per ounce, platinum rose 0.5% to $855.91 and palladium was steady at $2,046.84.