Gold prices edged up on Wednesday, supported by technical buying amid worries over inflation in emerging markets, but gains were curbed as the dollar rose broadly on heightened concerns about international trade conflicts. Spot gold was up 0.2 percent at $1,193.24, as of 0758 GMT. In the previous session, it hit $1,189.20, its weakest in more than a week.
US gold futures were mostly steady at $1,198.40 an ounce. "Gold is holding up at these levels well as there are some uncertainties stemming from emerging market currency crisis," said Hareesh V, head of commodity research, Geojit Financial Services. "When the currency weakens, inflation shoots up and gold has historically performed well during those times."
Inflation worries generally boost gold, which is seen as a safe haven against rising prices. The bearish sentiment in gold has reflected in heavy liquidations in SPDR Gold, the world's largest gold-backed exchange-traded fund. Holdings have fallen 14.2 percent since a peak in late April, and 1.1 percent to 746.92 tonnes on Tuesday.
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