* Dollar also under pressure as Fed starts policy meeting
* Fed may repeat dovish stance amid global headwinds
* Gold could test November high of $1,138
(Recasts, adds comment, updates prices)
By Manolo Serapio Jr
MANILA, Jan 26 (Reuters) - Gold rallied to its highest since
November on Tuesday, with investors shifting to safe-haven
assets as worries over a slowing global economy hit stocks and
crude oil again.
The Federal Reserve is expected to take notice of the
macroeconomic headwinds from China to Europe when policymakers
meet later in the day, boosting hopes that it may go easy in
hiking U.S. interest rates further.
That bodes well for gold, which has risen nearly 5 percent
so far this year, after losing more than 10 percent in 2015.
Spot gold XAU= was up 0.5 percent at $1,112.86 an ounce by
0635 GMT, after earlier peaking at $1,113.54, its highest since
Nov. 4.
"Gold might go for a run," said Brian Lan, managing director
at gold dealer GoldSilver Central in Singapore, adding the metal
could test $1,138, reached on Nov. 3. "If that is breached, it
could go to $1,160."
"We've heard some demand increasing in China because the
stock market and currencies - people don't have confidence in
these anymore - so the only one that they are looking at at the
moment is gold," said Lan.
Asian stocks skidded, with Chinese shares down 5 percent,
after oil prices fell back below $30 a barrel. MKTS/GLOB
U.S. gold for February delivery GCcv1 rose 0.7 percent to
$1,113.10 an ounce.
The Federal Open Market Committee starts a two-day policy
meeting later on Tuesday, and is widely expected to leave its
federal funds rate unchanged at 0.25-0.50 percent.
The probability of another rate increase at the next Fed
meeting in March has eased, with some analysts seeing it
postponed to later in the year.
That puts downward pressure on the dollar .DXY and
benefits gold.
At this week's meeting, it is likely that "the Fed will
reiterate its dovish stance and this should push gold prices
up", INTL FCStone analyst Edward Meir wrote to clients.
Meir said the poor shape of the U.S. equity market shows "a
major capitulation will be needed in order to clear out much of
the selling", suggesting investors should keep a bullish gold
bias in the near term.
Spot platinum XPT= was down 0.6 percent at $853.24 an
ounce, but well off last week's seven-year trough of $806.31.
Platinum is forecast to average less than $1,000 an ounce in
2016 for the first time in more than a decade as global growth
concerns and demand fallout from the Volkswagen VOWG_p.DE
scandal grip the market, a Reuters poll showed.
Spot palladium XPD= slipped 0.6 percent to $486.90 an
ounce and silver XAG= gained 0.3 percent to $14.27.