Bengaluru — Gold steadied on Wednesday, supported by a dip in the dollar, while gains were capped by a rally in global stocks following reassuring economic data from the US and China and optimism that the two countries would strike a trade deal. Spot gold was unchanged at $1,292.29 an ounce as of 10.19am GMT, having touched its lowest level since March 7 at $1,284.76 in the previous session. US gold futures were up 0.1% to $1,296.20 an ounce. Rising stock markets are holding gold back, said Fawad Razaqzada, market analyst with Forex.com, adding, “investors are moving into racier equity markets rather than slower moving precious markets. Given the fundamental factors, even though the equity markets remain supported, it doesn’t mean gold will fall. With the US Federal Reserve being dovish, the dollar being low, and yields being lower, the fundamental environment for gold itself is positive.” Signs of progress in US-China trade talks this week and decent factory activity data from both...

Subscribe now to unlock this article.

Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).

There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.

Cancel anytime.

Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.

Speech Bubbles

Please read our Comment Policy before commenting.