By Harshith Aranya
(Reuters) – Gold traded steady on Thursday after snapping a three-session winning streak the previous day, as a rally in the equity markets, on hopes for additional support measures to compensate for a portion of the support of a weaker dollar.
Spot gold was unchanged at $1 727.65 an ounce by 0259 GMT, after a 0.7% decline on Tuesday. U. s. gold futures fell 0.1%, to $1,732.20.
“There are many investors who have bought gold as a hedge for stocks, but the stocks are going up, and they don’t see the value now,” said Stephen Innes, chief market strategist at financial services firm AxiCorp.
Asian shares vaulted to a near three-month, as hopes of more stimulus and easing of social restrictions outweighed the prudence of a host, or the worries of the corona virus, a new U. s. the civil unrest.
Governments and central banks around the world have unleashed unprecedented fiscal and monetary stimulus, and other support to the economy brought down by the corona virus of the pandemic.
Investors hope that the European Central Bank will offer further stimulus, by close to 500 billion euros, when it meets on Thursday.
Meanwhile, in direct protests against police brutality continued in the united States, in spite of the curfew.
Gold is often seen as an alternative investment during times of political and financial uncertainty.
There is not a lot of pressure for gold to go below the $1,700 level, Innes said.
Gold has gained nearly 19% since hitting a near four-month low of 1 450$.98 in March.
Portfolio companies or the SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose for a sixth straight session on Tuesday.
– In other precious metals, palladium rose 1% to $1,968.20 an ounce, while platinum fell 0.3% to $836.25.
Silver fell 1.3% to$ 17.86, after having reached its highest since Sept. 25 on Tuesday.
(Reporting by Harshith Aranya and Brijesh Patel in Bangalore; Editing by Subhranshu Sahu)