LONDON: Gold steadied on Monday as the dollar retreated against the euro, though stronger equities and appetite for risk continued to dull the metal’s appeal as an alternative investment.

Spot gold was unchanged at $1,195.30 an ounce at 1528 GMT. It lost about 2 per cent last week on a strong dollar and expectations of rising US interest rates. US gold futures for delivery in February were down 0.1pc at $1,195.30 an ounce.

Gold received some early support from buying in top consumer China, where local prices were at a premium of about $3 an ounce to the global benchmark, though they slipped later in the session to about $1.

Higher interest rates would boost the dollar and hurt non-interest-bearing bullion, which was lifted by central bank liquidity and a low interest rate environment in the years following the 2008 financial crisis.

Published in Dawn December 23th , 2014