Gold prices held ground on Wednesday on a weaker dollar amid uncertainties around the timing of a rate hike by the Federal Reserve and upcoming US presidential election. Spot gold was firm at $1,262.00 an ounce at 0731 GMT. In the previous session, the precious metal touched $1,264.78, its highest since October 10. US gold futures was broadly unchanged at $1,262.8 an ounce.
Recent support for gold prices has had to do with the demand mostly from China and emerging markets, said Richard Xu, a fund manager at HuaAn Gold, China's top gold exchange-traded fund. "If you look at the Chinese local gold prices, they are roughly 2 percent higher than the global gold prices," Xu added. "The dollar is probably showing some kind of a weakness after pushing out so high, so that might also help the gold stabilise for a while." Spot gold may test resistance at $1,266 per ounce, as suggested by its wave pattern and Fibonacci projection analysis, according to Reuters technical analyst Wang Tao.