2019.08.2907:00:00UTC+00Gold Holds Steady As Equities Rise

Gold prices were flat to slightly lower on Thursday as some easing of trade worries and optimism over the formation of a new government in Italy helped lift demand for riskier assets such as equities.

Spot gold held steady at $1,538.90 per ounce while U.S. gold futures were down 0.1 percent at $1,547.75 an ounce.

European markets are rallying and U.S. stock futures turned positive after Italy's 5-Star Movement and the opposition Democratic Party said they would try to form a coalition and avoid snap elections.

Elsewhere, China's Commerce Ministry reportedly said during a weekly briefing that both sides "should create necessary conditions" to continue negotiations and that China was against escalating the trade war.

Significantly, the comments came a day after the Trump administration officially stamped its extra 5 percent tariff on $300 billion in Chinese imports.

Gold prices remain somewhat supported by increasing chances of a hard Brexit and concerns over slowing global growth.

The British pound edged lower, a day after Prime Minister Boris Johnson decided to prorogue parliament ahead of the Brexit deadline.

San Francisco Federal Reserve President Mary Daly said on Thursday that uncertainty and a global growth slowdown are having an impact on the U.S. economy and she was in "watch and see" mode in assessing the need for another U.S. interest-rate cut.