2019.04.0307:09:00UTC+00Gold Holds Steady As Dollar Weakens

Gold prices held steady on Wednesday and the U.S. dollar weakened as investors cheered encouraging data from China and signs of progress in U.S.-China trade talks.

Spot gold was marginally higher at $1,292.97 per ounce, after having touched its lowest level since March 7 at $1,284.76 in the previous session. U.S. gold futures were up 0.15 percent at $1,297.25 an ounce.

Markets across Asia and Europe moved higher after China reported better-than-expected service sector activity data for March.

The Caixin services PMI rose to 54.4 in the month, up from 51.1 and beating expectations for a score of 52.0. That's the highest reading in 14 months.

Investors also reacted positively to reports suggesting the U.S. and China have ironed out most of their differences in trade negotiations.

They are drawing closer to a final trade agreement with final discussion centered on how to implement and enforce an agreement, the Financial Times reported.

Meanwhile, there is "a certain amount of optimism" and the world's two largest economies "expect to make more headway" in trade talks this week, White House economic adviser Larry Kudlow said ahead of the resumption of talks between the U.S. and China in Washington.

U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin are due to resume talks with Chinese Vice-Premier Liu He today.

On the Brexit front, British Prime Minister Theresa May said she would ask the EU for a "short" extension to the Article 50.