Gold steadies as equities, euro lend support
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Gold prices steadied above $1,570 an ounce on Tuesday as renewed strength in stock markets and a weaker tone to the dollar lent support, but the metal struggled for traction after plumbing 10-month lows last week.
A positive start to US earnings season and well-received Chinese inflation data helped lift European shares for a second day, and underpinned the euro. That helped support investment appetite for other assets, including gold.
Spot gold were little changed at $1,573.86 an ounce at 1220 GMT, while US gold futures for June delivery were up 0.2 per cent at $1,575.90.
A weaker tone to the dollar, which fell a quarter-per cent against a basket of major currencies, also underpinned prices. Investors remain cautious towards the metal, however, after it slipped sharply last week in the wake of weak US jobs data.
"Many are simply undecided and the short sellers still smell the potential for a major reward should this weakness continue," Saxo Bank Vice President Ole Hansen said. "Buyers have become a bit disillusioned with many probably preferring to sit it out until we make a move back above $1,620."
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