Gold steadies as dollar slips

Gold prices erased early losses to steady on Thursday, helped by a weaker dollar and technical buying as investors await key US economic data later in the day for further clarity on future interest rates, reports Reuters.

Spot gold was little changed at $3,179.07 an ounce as of 1102 GMT, after hitting its lowest since April 10 earlier in the session. US gold futures fell 0.3 per cent to $3,179.20.

"We're seeing it's more of a short-covering bounce for gold," said Fawad Razaqzada, market analyst at City Index and FOREX.com. "With the dollar weakening, it possibly has contributed to the demand."

He said technical factors were also at play, with gold coming off key trendline support "that has been in place since the start of this year". "That level comes in at... (around) $3,130," Razaqzada said.

The dollar index slipped 0.3 per cent, making gold cheaper for other currency holders.

The US and China this week agreed to temporarily slash harsh reciprocal tariffs, de-escalating a trade war and denting demand for gold as a safe haven.