Gold steadied on Wednesday with appetite for the metal soured by a firmer dollar despite weaker Asian equities, and failure to breach a key resistance and a looming US rate hike suggest more downside risk. Spot gold was flat at $1,140.70 an ounce by 0624 GMT, after touching a one-week high of $1,147.16 on Tuesday. Gold has failed to convincingly breach the $1,145 resistance even in the face of a 3 percent slide in US stocks on Tuesday, said Howie Lee, analyst at Phillip Futures in Singapore.
"This suggests that in the short term, stock market meltdown or no meltdown, gold prices are unwilling to move above $1,145 (and) it will take a way stronger catalyst, say a very weak nonfarm payrolls number this Friday, to substantially bring prices (higher)," Lee wrote in a note to clients.
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