"The question asked is whether Evergrande [will] decide to fully liquidate or restructure?" Pepperstone head of research Chris Weston said.
"This could have an effect on contagion risk and push markets into a new volatility regime."
Gold was up more than US$10 an ounce from this time yesterday to $1,764/oz on the spot market.
Meanwhile base metals fell on the London Metal Exchange, where copper lost 2.77% to $9,049.15 per tonne.
"The bearish macro takes hold - a mix of Evergrande and wider onshore property concerns and the effect that has on Chinese growth," Marex's Al Munro said from the LME desk.
Iron ore has slid further, to $90.90/t for Australian 62% fines, according to MySteel.
Copper producers Freeport-McMoRan and First Quantum Minerals both lost more than 5.6%, in New York and Toronto respectively.
Diversified Anglo American fell 4.65% in London while Barrick Gold gained 2% in Toronto.