Gold steady as equity rally offsets softer dollar

Gold steady as equity rally offsets softer dollar

03 Jun 2020 10:45 AM

Gold traded steady on Wednesday after snapping a three-session winning streak in the previous day, as a rally in equity markets on hopes of more stimulus offset some support from a weaker dollar.

Spot gold was unchanged at $1,727.65 per ounce by 8:29 am, after declining 0.7% on Tuesday. U.S. gold futures fell 0.1% to $1,732.20.

Asian shares vaulted to a near three-month high as hopes of more stimulus and a further easing in social restrictions outweighed caution over a host of worries from the coronavirus to growing U.S. civil unrest.   

Governments and central banks around the world have unleashed unprecedented fiscal and monetary stimulus and other support for economies floored by the coronavirus pandemic.

Helping gold, the dollar index was down 0.2%, trading at a more than two-month low. 

In other metals, palladium rose 1% to $1,968.20 per ounce, while platinum fell 0.3% to $836.25. Silver fell 1.3% to $17.86, having hit its highest since Feb. 25 on Monday.