Mubasher: Gold prices stabilised earlier on Wednesday as US dollar retreated, after rebounding from a four-week low in the prior session, despite a multi-month high in equities dampened safe-haven demand, Reuters reported.

By 11:05 am GMT, spot gold went up 0.12% to $1,293.95 per ounce, after diving to $1,284.76 per ounce, the lowest since 7 March, while US gold futures rose 0.18% to $ 1,297.70 per ounce.

At 11:06 am GMT, the US dollar index, which tracks the greenback against a basket of six major peers, fell 0.32% to 97.0500, making the yellow metal more affordable for non-US currency holders.

Asian shares surged to seven-month peaks, driven by signs of progress in trade negotiations between the US and China as well as positive data.

“There won’t be much movement in gold prices as stocks have gone up to their highs in Asia and investors are not seeing gold as a good safe-haven,” Singapore-based dealer GoldSilver Central managing director Brian Lan was quoted by Reuters.

The world’s biggest two economies “expect to make more headway” in trade negotiations this week, White House adviser Larry Kudlow said.

It is worth noting that US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will resume talks with Chinese Vice Premier Liu He in Washington later in the day.

Market participants are also watching developments on the UK’s exit from the European Union (EU).

UK prime minister Theresa May would ask the EU to postpone further the Brexit deadline in order to agree with the opposition Labour Party on a withdrawal deal.