Gold steadied on Wednesday after sharp gains overnight as shares extended drop, while the dollar’s advance put some pressure on bullion prices.
The precious metal hit a high of $1232.47 an ounce, while currently trading around $1225.13 from the opening at $1224.94.
Asian shares extended its drop on Wednesday, as oil prices retreated and investors flocked to save haven assets.
Following its 5.8 percent drop on Tuesday, crude oil dropped further today to $31.06 a barrel from the opening at $31.26, pushing energy shares lower.
Investors flocked to safe havens, led by gold in commodities and yen, franc and euro in currencies.
The dollar rose against a basket of major currencies on Tuesday, where it dropped the previous session after the release of downbeat U.S. consumer confidence data.
The green currency soared to 97.58 from the session’s opening at 97.48, eroding demand on bullion as an alternative investment.
Expectations that the Fed would delay its interest rate hike to later this year have helped oil prices to remain firm.
The Fed should hold its interest rate for an “extended period” to give inflation a chance to rise towards the central bank’s 2 percent goal, Dallas Fed Chief Robert Kaplan said on Tuesday.
The strong support at the psychological level of $1200 prevented bullion may put it on track to rising higher.
