(Reuters) – Gold prices were steady on Wednesday on a weaker dollar, after recovering from a four-week low in the previous session, even as safe-haven demand for the metal was muted due to a rally in equities to multi-month highs.

FILE PHOTO: Gold pieces, each weighing 100 grams, are seen arranged at the state-owned mining company PT Antam Tbk metal refinery in Jakarta July 13, 2012. REUTERS/Beawiharta

Spot gold was flat at $1,293.33 per ounce as of 0545 GMT, having touched its lowest level since March 7 at $1,284.76 in the previous session. U.S. gold futures firmed 0.2 percent at $1,297.70 an ounce.

The dollar index weakened about 0.2 percent against its rivals, thereby making bullion cheaper for holders of other currencies.

“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,” said Brian Lan, managing director at dealer GoldSilver Central in Singapore.

Asian shares climbed to seven-month highs as investors lapped up signs of progress in U.S.-China trade talks and brisk economic data.

Markets drew hope from White House economic adviser Larry Kudlow, who on Tuesday said the two countries “expect to make more headway” in trade talks this week.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are due to resume talks with Chinese vice premier Liu He later on Wednesday.

“The yellow metal continues to trade within the $1,280 to $1,300 range and still looks likely to test downside support through $1,280-$1,285 as global equities firm,” MKS said in a note.

The market is also closely following developments around Britain’s departure from the European Union. Prime Minister Theresa May said on Tuesday she would seek another Brexit delay to agree an EU divorce deal with the opposition Labour leader.

Signifying investor sentiment toward bullion, holdings in the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell to their lowest since March 8 at 768.10 tonnes on Tuesday.

Among other precious metals, spot palladium was up 0.1 percent at $1,430.34 an ounce.

Silver gained 0.5 percent to $15.18 per ounce having touched its lowest level since late December at $14.90 in the previous session, while platinum rose 1.5 percent to $858.53.

Reporting by K. Sathya Narayanan and Arijit Bose in Bengaluru; Editing by Gopakumar Warrier


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