(Reuters) – Gold prices slipped on Wednesday, after touching their lowest level in four weeks in the previous session, as equities traded near a seven-month high, denting bullion’s appeal.

FUNDAMENTALS

Spot gold dipped 0.1 percent to $1,291.65 per ounce by 0106 GMT, after touching its lowest since March 7 at $1,284.76 in the previous session.

U.S. gold futures were flat at $1,295.60 an ounce.

Asian shares hovered near seven-month highs on Wednesday as global investors took a breather from a rally boosted by positive U.S. and China factory activity surveys.

The dollar was down about 0.1 percent against key rivals, after touching its highest since March 8 in the previous session.

New orders for key U.S.-made capital goods slipped in February and shipments were unchanged, but data for January was revised slightly higher, which could support views that the manufacturing sector was stabilising.

British construction activity slowed slightly for the second month in a row in March, as businesses continued to postpone major building projects due to Brexit uncertainty, an industry survey showed on Tuesday.

International Monetary Fund Managing Director Christine Lagarde said on Tuesday that global growth has lost momentum amid rising trade tensions and tighter financial conditions, but pauses in rate hikes will help boost activity in the second half of 2019.

The United States and China “expect to make more headway” in trade talks this week, White House economic adviser Larry Kudlow said on Tuesday as the top U.S. business lobbying group said differences over an enforcement mechanism and the removal of U.S. tariffs were still obstacles to a deal.

Prime Minister Theresa May said on Tuesday she would seek another Brexit delay to agree an EU divorce deal with the opposition Labour leader, a last-ditch gambit to break an impasse over Britain’s departure that enraged many in her party.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.6 percent on Tuesday.