LONDON: Gold steadied on Wednesday as the dollar firmed ahead of a Federal Reserve policy decision and as receding worries over global economic growth led investors to buy equities and to sell assets perceived as safe havens.
Company results and economic data have been upbeat of late. Germany's Ifo business survey on Tuesday also showed confidence, soaring to record highs in July, while US consumer confidence levels jumped to near 16-year highs, boosting the dollar.
Traders said short dollar positions were being trimmed on Wednesday ahead of the Federal Reserve's policy decision, not due until later in the US session. (1800 GMT)
"It's mainly sky rocketing risk appetite that's weighing on gold. US stocks closed at record highs, bonds tumbled, yields increased sharply and these are the ingredients for lower gold prices," said Commerzbank analyst Carsten Fritsch.
"Stocks seem immune, at least for the moment, against a rather uncertain economic outlook and the political mess in Washington, and unless this changes gold will struggle to make meaningful gains."
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