Gold down in Europe

Gold edged down on higher shares on Wednesday, but was poised to end 2014 largely flat around $1,200 an ounce as the impact of a strong dollar was offset by demand from investors worried about tensions in Russia and political uncertainty in Greece. Bullion was on track for a 0.7 percent fall this year after a turbulent 2013, when prices fell by a third following 12 years of gains.
Spot gold was down 0.5 percent at $1,194.46 an ounce by 1448 GMT. On Tuesday, it climbed to a near two-week high of $1,209.90 as concerns over tension between Russia and the West weakened the dollar and stock markets. US gold futures for delivery in February were down 0.4 percent at $1,196.10 an ounce.
Prices have been relatively less volatile in 2014 compared with last year's 28 percent slide and $500 trading range. Despite falling to a 4-1/2-year-low in November, gold has traded in a $260 range for the year. Gold's main driver in 2014 has been a buoyant dollar, which was poised to post its biggest yearly gain since 2005, and anticipated US interest rate hikes may strengthen its appeal in the coming year. Higher rates weigh on non-interest-bearing bullion.
"Considering the strong dollar performance in 2014, gold's downside this year has been a little bit protected by international political events that have attracted some safe-haven buying, especially in the first half," ABN Amro commodity strategist Georgette Boele said. "But a new drop in gold prices driven by a stronger dollar and higher US interest rate expectations is likely in 2015, when we see prices average $1,000 an ounce."
"We await next year's crude prices and other commodities to see if inflation rears its head or if geopolitics suddenly move gold," RBC Wealth Management Financial Advisor George Gero said in an email. Investors continued to run down gold holdings in 2014, with the world's largest gold-backed exchange-traded fund, the SPDR Gold Trust, falling by 140 tonnes to six-year lows of 710.81 tonnes. Redemptions, however, were much smaller than in 2013, when the fund saw a record outflow of 460 tonnes, or 39 percent, to around 850 tonnes.
Silver fell 1.9 percent to $15.97 an ounce and was on track for an 18 percent annual decline and platinum, down 0.3 percent at $1,209.50 an ounce, was also headed for a yearly fall. With a 13 percent jump, palladium was the best performing precious metal this year, mostly on supply concerns from top producer Russia. Prices were up 0.1 percent at $801.20 an ounce.