LONDON: Gold steadied on Wednesday after the previous day’s drop, supported by simmering conflict in Ukraine and the Middle East, but under pressure from buoyancy in stock markets after positive US data and corporate earnings.

Sluggish physical demand in Asia in the seasonally quiet summer period is also weakening support for any price rally.

Spot gold was at $1,307.90 an ounce by 1410 GMT, little changed from $1,307.00 late on Tuesday. US gold futures for August delivery were up $3.10 an ounce at $1,309.40.

Spot gold has traded within its narrowest mont-hly range in nearly five years so far in July. Prices have struggled to make significant headway in the face of rising equity markets, which have diverted some investment interest from gold.

Palladium prices have hit 13-1/2 year highs this month, in part due to concerns that supply of the metal from Russia may be threatened by its stand-off with the West over Ukraine.—Reuters

Published in Dawn, July 24th, 2014