LONDON: Gold steadied on Wednesday after sliding to a five-week low in the previous session as a slump in oil prices pushed down stock markets and the US dollar weakened, making bullion cheaper for holders of other currencies.

Gold is highly sensitive to rising rates and yields, which lift the opportunity cost of holding non-yielding assets such as bullion while boosting the dollar, in which it is priced.

“The change in sentiment has helped gold,” ABN AMRO analyst Georgette Boele said. Spot gold was flat at $1,243.21 an ounce at 1416 GMT, while US gold futures were up 0.1 per cent at $1,244.50 an ounce.

Gold has fallen around 4pc from a high of $1,295.97 early this month. But traders were sceptical that gold had hit bottom.

Silver was down 0.3pc at $16.41 an ounce, just above a six-week low hit in the previous session, while platinum was up 0.2pc at $920.50 an ounce Palladium was 1.3pc higher at $879.25 an ounce, its second day of gains after it fell back from a 16-year high on June 9 of more than $900.

Published in Dawn, June 22nd, 2017