U.S. stock index futures continue to trade higher Tuesday, as a stronger-than-expected retail sales report helped allay fears of a sharp economic slowdown ahead of the Federal Reserve's latest policy-setting meeting.

Oil prices edged lower on Tuesday, as fears of weaker demand in China weighed on market sentiment, while focus turned to the U.S. Federal Reserve's policy meeting that concludes on Wednesday.

Goldman Sachs analysts reaffirmed their bullish outlook on gold, highlighting that the expected interest rate cuts from the Federal Reserve will likely boost gold prices.

Oil prices extended gains on Tuesday as the market eyed U.S. output concerns in the aftermath of Hurricane Francine and expectations of lower U.S. crude stockpiles.

Gold prices fell slightly in Asian trade on Tuesday, but remained close to record highs amid growing conviction that the Federal Reserve will cut interest rates by a wide margin this week.

The dollar traded near its lowest levels of the year on Tuesday, on the eve of the expected the start to a U.S. easing cycle that markets are betting may begin with an outsized rate cut.