Gold price steadies as Brexit fear fades, global equities rally
Beijing-China (July 13) Gold edged up on Wednesday after suffering its biggest fall in seven weeks, with global equities rallying on easing political uncertainty in the UK, which is set to receive a new prime minister.
Asian shares came within reach of their 2016 peak on Wednesday on prospects of solid US growth and accommodative economic policy in major countries.
Theresa May, who will take over as the UK's prime minister on Wednesday, has said she plans to set up a new government department to lead the process of withdrawing the country from the EU.
Spot gold edged up 0.25 percent to $1,337.48 per ounce by 7:07 pm Beijing time. It fell 1.7 percent on Tuesday in its biggest one-day drop since May 24, touching a near two-week low of $1,329.75.
US gold inched up 0.32 percent to $1,339.60 an ounce, after falling 1.6 percent in the previous session.
"There was some selling in early trade, which seemed to be a bit of weak longs that were getting stopped on the break of the $1,330 level. Since then we have just been grounding back up," said a Sydney-based trader, who did not want to be named.
"In the medium to longer term, the market will be pushed high, but I would not be surprised if there is further longer liquidation and maybe a push toward $1,300 in the next few sessions," the trader said.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 1.63 percent to 965.22 tons on Tuesday, its biggest one-day decline since December 2, 2015.