Gold prices tread lower on Wednesday as the dollar steadied, with investors awaiting minutes from the US Federal Reserve's last meeting in July for clues on the pace of potential interest rate hikes. Spot gold had slipped 0.2 percent to $1,269.11 per ounce by 0712 GMT, following two sessions of falls.
US gold futures for December delivery were down about 0.4 percent at $1,274.90 an ounce. Minutes of the Federal Open Market Committee meeting are due later in the day. "The bullish dollar is shifting the focus away from the safe havens," said Naeem Aslam, chief market analyst at Think Markets.
"The increasing odds of the US interest rate hike could push the gold price below the $1,250 level and this could happen if the upcoming FOMC minutes deliver some hawkish tone." Spot gold may test a resistance at $1,278 per ounce, a break above which could lead to a gain to the next resistance at $1,286, Reuters technical analyst Wang Tao said.
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