Gold steadied on Thursday after suffering its biggest fall in five weeks in the prior session as stock markets recovered, but indications that a US rate hike might happen later than expected kept a floor under prices. Cheered by Wall Street's rebound, Asian stocks rose led by Chinese markets whose deep tumble this week fed a global rout.
"Gold has been correlated a lot with stock markets in the past couple of days due to the fear globally," said Howie Lee, an analyst at Phillip Futures in Singapore. "It's not surprising to see gold come back off as stocks stabilise." Spot gold was up 0.1 percent at $1,126.65 an ounce by 0602 GMT, after dropping 1.3 percent on Wednesday, its steepest decline since July 20. Bullion fell to a one-week low of $1,117.35 overnight, taking its losses this week to nearly 3 percent. US gold for December delivery edged up 0.2 percent to $1,126.40 an ounce.
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