Gold prices hit a fresh six-and-a-half-month low on Wednesday as the US dollar steadied and investors turned to other safe-haven assets amid expectations of more interest rate hikes by the US Federal Reserve. Spot gold fell for a third straight session and was down 0.3 percent at $1,255.51 an ounce, as of 0626 GMT, after hitting its lowest since mid-December at $1,253 earlier in the session.
US gold futures for August delivery were 0.2 percent lower at $1,257.30 per ounce. "Gold does not seem to be benefiting from any risks relating to rising trade tensions, but is experiencing declines from a firmer dollar and any improvement in equity markets," said John Sharma, an economist at National Australia Bank. "It appears that investors are seeking safe havens in the US treasuries and currencies such as the Japanese Yen. Near term, gold will remain under pressure."