Gold edged towards a seven-week high on Thursday as a sell-off in global equities and the dollar burnished the metal's safe-haven appeal, though weaker oil prices capped gains.
The dollar index fell for a fourth session in a row on strength in the yen, while Asian stocks eased on global growth concerns
The dollar index fell for a fourth session in a row on strength in the yen, while Asian stocks eased on global growth concerns
Gold is seen as an alternative investment to riskier assets such as equities. Weakness in the greenback also makes dollar-denominated bullion more attractive.
Five-year-low oil prices kept bullion gains in check. Gold tends to fall in tandem with oil as weaker energy prices dull the metal's appeal as a hedge against oil-led inflation.
Spot gold had risen 0.2 per cent to $1,229.40 an ounce . The metal rose to a seven-week high of $1,238.20 on Wednesday, but failed to hold on to those gains and ended the day down 0.3 per cent.
Safe-haven demand and short covering have been behind gold's recovery from four-and-a-half-year lows hit last month.
Among other precious metals, silver gained for a fourth session to trade near its highest in over a month. Platinum and palladium gained about 1 per cent each.
Five-year-low oil prices kept bullion gains in check. Gold tends to fall in tandem with oil as weaker energy prices dull the metal's appeal as a hedge against oil-led inflation.
Spot gold had risen 0.2 per cent to $1,229.40 an ounce . The metal rose to a seven-week high of $1,238.20 on Wednesday, but failed to hold on to those gains and ended the day down 0.3 per cent.
Safe-haven demand and short covering have been behind gold's recovery from four-and-a-half-year lows hit last month.
Among other precious metals, silver gained for a fourth session to trade near its highest in over a month. Platinum and palladium gained about 1 per cent each.
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