By Sumita Layek
(Reuters) - Gold prices fell on Wednesday as the dollar held near a multi-month high buoyed by interest from investors seeking cover from sliding stocks and by prospects for higher U.S. interest rates.
Spot gold was down 0.1 percent at $1,201.08 per ounce at 1251 GMT. Prices had slipped to their lowest since Oct. 11 at $1,195.90 in the previous session.
U.S. gold futures were flat at $1,201.4 per ounce.
"The continuing dollar strength is weighing on gold. What people are doing is selling everything to buy the dollar and that includes gold," said Alasdair Macleod, head of research at GoldMoney.com.
The dollar index, a gauge of its value versus major currencies, was firm near a 16-month high, after retracing slightly earlier in the session as investors took profits prompted by gains in the euro and sterling on growing confidence about a draft Brexit deal.
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The British cabinet will meet at 1400 GMT to consider the withdrawal agreement.
Meanwhile, stocks fell on worries about a slowdown in global economic growth.
Gold, usually considered a safe investment during times of political or economic uncertainty, has fallen about 12 percent from a peak in April as investors flocked to the dollar instead, with U.S.-China trade friction unfolding against a background of higher U.S. interest rates.
Market participants will also be keeping an eye on Federal Reserve Chairman Jerome Powell's appearance in the Federal Reserve Bank of Dallas Global Perspective Speaker Series at 2300 GMT for clues on the U.S. monetary policy outlook.
The dollar has benefited over the last week from expectations of further U.S. rate hikes.
"Gold is likely to be range bound for the reminder of the year ... a sustained rally doesn't appear to be the emphasis," said Capital Economics analyst Ross Strachan.
Spot gold may bounce to $1,211 per ounce, as it has found a support around $1,195, said Reuters technical analyst Wang Tao.
Meanwhile, holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.11 percent to 761.16 tonnes on Tuesday. The holdings, however, remained near their highest level in more than two months.
Among other precious metals, silver was unchanged at $13.98 per ounce, having matched its lowest since Jan. 21, 2016, at $13.85.
"Silver tends to be a more volatile mover than gold, so when gold gets down, silver gets down even faster," GoldMoney.com's Macleod said.
Palladium fell 0.1 percent to $1,109.20 per ounce, while platinum was down 0.8 percent at $828.50 an ounce.
(Reporting by Sumita Layek and Arpan Varghese in Bengaluru; editing by Mark Potter and Jason Neely)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
