Gold was little changed in Asia on Thursday as the dollar steadied and equities climbed on signs of easing trade tensions between the United States and China, while palladium rose to a record high, trading at a premium to the bullion. Spot gold was steady at $1,245.55 per ounce at 0806 GMT, while US gold futures were up 0.1 percent at $1,251.2 per ounce.
"Market sentiment is neutral today... We've got a little more positive sentiment than we anticipated from US-China trade tensions, which is weighing on the topside," said Stephen Innes, APAC trading head at OANDA in Singapore. "Dollar hasn't made much moves and that's the real signpost for gold as they are still highly correlated."
China appears to be easing its high-tech industrial development push, dubbed "Made in China 2025," which has long irked the United States, while it also made its first major US soybean purchases in more than six months on Wednesday. Investors seem more interested in equity at this point of time than in gold, said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
However, analysts see uncertainties around the Brexit deal and expectations of the US Federal Reserve's dovish tone at its meeting next week, supporting the yellow metal. "There is lacklustre movement right now," said Kunal Shah, head of research at Nirmal Bang Commodities in Mumbai, India. Spot gold looks neutral in a range of $1,240-$1,253 per ounce, and an escape could suggest a direction, said Reuters technical analyst Wang Tao.