prices held ground on Wednesday on a weaker dollar
amid uncertainties around the timing of a rate hike by the Federal Reserve and upcoming US presidential election.
was firm at $1,262.00 an ounce at 0731 GMT. In the previous session, the precious metal touched $1,264.78, its highest since October 10.
futures was broadly unchanged at $1,262.8 an ounce.
Recent support for gold
prices has had to do with the demand mostly from China
and emerging markets, said Richard Xu, a fund manager at HuaAn Gold, China's top gold
"If you look at the Chinese local gold
prices, they are roughly 2 per cent higher than the global gold
prices," Xu added.
is probably showing some kind of a weakness after pushing out so high, so that might also help the gold
stabilise for a while."
stepped back from a seven-month high against an index of currencies on Wednesday after US consumer prices showed a moderation in underlying inflation, prompting markets
to trim bets on a December Federal Reserve rate hike.
A Reuters poll showed chances the Federal Reserve will raise interest rates in December are now put at 70 per cent.
is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
may test resistance at $1,266 per ounce, as suggested by its wave pattern and Fibonacci projection analysis, according to Reuters technical analyst Wang Tao.
Asian shares rose for a second session as a barrage of Chinese data confirmed that the economy had stabilised.
"We remain relatively negative on gold
short-term despite a stronger start to the week," INTL FCStone analyst Edward Meir said in a note.
"We expect further dollar
strengthening going into Q4 on account of an election victory for Hillary Clinton along with the likelihood of a Fed rate hike."
Among other precious metals, spot silver was steady at $17.59 an ounce. It hit a more-than-one-week high of $17.71 on Tuesday.