Gold traded in a narrow range on Wednesday, hovering near a six-month low hit in the previous session, amid a firm dollar and stronger Asian equities. Spot gold held steady at $1,273.83 an ounce, as of 0655 GMT. The metal fell to its lowest since Dec. 22 at $1,270 an ounce on Tuesday.
US gold futures for August delivery were, however, 0.2 percent lower at $1,275.80 per ounce. Gold is not doing its part as a safe-haven asset compared to others like the yen and US Treasury yields, said OCBC analyst Barnabas Gan.
Gold prices generally gain momentum during times of uncertainty as it is considered a safe place to park assets. Spot gold may test a support at $1,268 per ounce, with a good chance of breaking below this level and falling more towards the next support at $1,258, said Reuters technicals analyst Wang Tao.
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