Gold fell 1 percent on Wednesday as the dollar and stocks gained, though tensions over North Korea and upcoming French and UK elections underpinned demand in the safe-haven asset. Spot gold fell as low as $1,275.73 per ounce, and was last trading down 0.8 percent at $1,279.54 by 3:24 p.m. EDT (1924 GMT). US gold futures settled down 0.8 percent at $1,283.40.
"The 10-year Treasury yield at 2.2 percent is in positive territory keeping some pressure on the price of gold," said Walter Pehowich, executive vice president in charge of precious metals investments services for Dillon Gage Metals.
"It appears that large fund selling in the Far East overnight is also putting pressure on the price of gold, and this move has kept the Wall Street gold traders guarding their long positions."
The firm US dollar also pressured gold prices, analysts said. A stronger greenback makes dollar-denominated assets such as gold more expensive for holders of other currencies.
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