SINGAPORE: Gold prices held steady in Asian trade on Thursday as a stronger US dollar countered concerns that surging COVID-19 cases across Europe could slow the pace of economic recovery.
Spot gold was little changed at $1,733.48 per ounce by 0745 GMT. US gold futures were down 0.1% to $1,732.20 per ounce.
“One of the issues for gold is there seems to be two camps -for those worried about new lockdowns in Europe and ...those who have a very positive view of the economic outlook,” said Michael McCarthy, chief market strategist at CMC Markets, adding both these opposing scenarios were mildly supportive of gold.
Gold is also considered a hedge against inflation, which is likely spurred by widespread stimulus to boost economic growth.
“Stabilising bond yields, sanguine comments from the US Fed are keeping gold in a range without much direction,” said Michael Langford, director at corporate advisory AirGuide.