Gold prices steadied on Thursday as dollar traded near its more than two-week high, while lacklustre appetite for riskier assets offered some support to the safe-haven metal ahead of European Central Bank’s (ECB) policy meeting due later in the day.
Spot gold was down 0.1 percent at $1,284.59 per ounce, as of 0722 GMT. Earlier in the session, the bullion rose 0.1 percent to $1,288.34 per ounce.
U.S. gold futures slipped 0.2 percent to $1,284.90 an ounce.
The dollar index, which tracks the greenback against major currencies, was holding near 97.008, its highest since Feb. 19, posted earlier in the week.
“The major issue is the stronger U.S. dollar. There is some support for safe-haven assets. Equities in Asia have given up the gains and that reflects the pressure we are seeing on risk assets,” said Michael McCarthy, chief market strategist, CMC Markets.
Asian shares eased on Thursday, as investors showed caution over the outlook for global growth as they awaited the outcome of Sino-U.S. trade negotiations.
The Organization for Economic Co-Operation and Development cut forecasts again for the global economy in 2019 and 2020 cascading concerns on global growth.
“It seems that practically all major global economies are experiencing varying degrees of slowdown and at this stage we seem to be no closer to bottoming out,” INTL FCStone analyst Edward Meir said in a note, adding that it “should be constructive for gold.”