Gold held on to the previous session's gains on Wednesday as Asian stocks stumbled and weak US economic data undermined expectations of a near-term interest rate hike. The metal has had a stellar year so far, surging about 28 percent, as investors sought the safe-haven asset amid mounting economic worries, predominantly in the Western world.
Spot gold was up slightly at $1,364.15 an ounce by 0625 GMT, after hitting a high of $1,367.33, its loftiest since July 11, in the previous session. US gold dipped about 0.1 percent to $1,371.50 an ounce.
"We saw the equity markets weaken overnight and that has certainly helped the risk-off mode," said ANZ analyst Daniel Hynes.
"We see that the strong yen has helped push Japanese investors back into the gold markets," Hynes added.
The metal is highly sensitive to US interest rates, increases in which lift the opportunity cost of holding non-yielding gold while boosting the dollar, in which it is priced.
"We see further upside in gold and would not be surprised to see values get to and even break $1,400, especially if there is continued dollar weakness and more wobbles in the US equities," INTL FCStone analyst Edward Meir said in a note.
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