Gold trims losses in Europe

LONDON: Gold prices steadied in Europe on Wednesday after falling 1.5% overnight, with the metal getting support from firm oil, the West Asiat conflict and a change in track by the dollar.

Other metals were mixed, with silver falling to its lowest in a week before rising and palladium gaining marginally.

“The market is generally pretty quiet. The price volatility of the last few weeks has put a lot of players off. It’s both suppressing physical demand and putting off the investors,” said Stephen Briggs, economist, SG Corporate and Investment Banking.

Gold fell to a one-week low of $635.8 an ounce in Asia before rising to $645.4/646.9 by afternoon, against $645.5/646.3 in New York on Tuesday.

The dollar fell against key currencies after rising in Asia, with US interest rates seen on hold in the near future. The Fed left rates at 5.25% on Tuesday, saying its previous spree of rate rises should help moderate inflation over time.

But gold needed to rise above $650 and then $660 to maintain momentum. The metal has moved back and forth since rising to its highest in two weeks above $655 an ounce last Wednesday.

Sopt silver traded at $12.28/12.38 an ounce, from $12.23/12.28 in the US market on Tuesday.