Published 22 Hours AgoUpdated4 Hours AgoReuters
Gold fell on Wednesday, pressured as a rising dollar spurred investors to take profits after tumbling stocks ushered the metal to a more than three-month peak in the previous session.
Spot gold was up 0.17 percent at $1,232.11 an ounce . U.S. gold futures settled at $1,231.10 per ounce, down $5.70.
On Tuesday, the precious metal touched its highest since mid-July at $1,239.68.
"We are seeing a bit less risk aversion in the market, not as much as yesterday, and a strong U.S. dollar, which are probably putting some pressure on gold," said Kitco Metals senior analyst Jim Wyckoff.
The dollar index hit its highest since Aug. 17 against a basket of currencies, potentially weighing on demand by making the bullion more expensive for holders of other currencies.
U.S equities were in the red, falling into a mostly negative trend in world stocks, which have dropped for five straight days, pressured by earnings disappointment, concerns over Italy's budget and worries that world economic growth is losing steam.
"Following a strong performance we had in gold in the past few days, this may be a little bit of profit taking, although this should not be the end of the recovery in gold," Julius Baer analyst Carsten Menke said.
Gold was expected to stay supported as investors were likely to use bullion as insurance against growing political and economic tensions in the world, some analysts said.
"Increased concerns about international affairs across the board is contributing to investor concerns about the overall economy and in turn, stock markets," said Jeffrey Christian, managing partner of CPM Group.
Palladium fell 1.13 percent to $1,127.60 per ounce after hitting an all-time high of $1,150.50 in the previous session, boosted by tight supplies, large deficits and fresh interest from speculative investors.
"As long as it stays above $1,100, I wouldn't be surprised if some additional momentum comes and takes it higher as liquidity is not great," said Saxo Bank analyst Ole Hansen.
Silver was down 0.59 percent at $14.64 an ounce, while platinum dropped 0.10 percent to $829.30 an ounce.