LONDON Gold prices rose on Wednesday as the dollar slipped against a basket of currencies, with the market waiting for clues on the timing of a rise in U.S. interest rates.
Spot gold was trading up 0.3 percent at $1,322.55 an ounce at 1402 GMT. It touched $1,315.27 on Tuesday, the lowest in more than a week. U.S. gold futures were up 0.2 percent at $1,326.90 an ounce.
Expectations that the U.S. Federal Reserve will raise rates next week have receded, putting pressure on the dollar, which when it falls makes gold cheaper for holders of other currencies.
"The big picture is the Fed rate hike, which is going to be the biggest factor for gold, so in the short term markets will be looking at U.S. data," Natixis analyst Bernard Dahdah said.
"It's all about the opportunity cost of holding gold. Higher interest rates make it more expensive to hold gold, which has zero yield."
Markets are pricing in just a 15 percent chance that U.S. interest rates will be hiked this month, according to CME FedWatch. Many now expect a rise in December after the U.S. presidential election.
Goldman Sachs puts the chances of a rate hike in December at 40 percent.
On the technical front, initial resistance comes in around $1,330, near the 21-day moving average.
"Gold is approaching the important $1,300-$1,310 support zone, which has held incredibly well since the Brexit rally and will be a key focus for traders in the short term," said Alex Thorndike, senior precious metals dealer at MKS PAMP Group.
Spot silver was up 0.7 percent at $18.98 an ounce.
Platinum gained 0.2 percent at $1,034.75. It fell more than 2 percent to touch a more than two-month low of $1,026.10 on Tuesday.
Palladium rose 0.5 percent to $654.5 after an eight-week low of $648.72 hit on Tuesday.
(Additional reporting by Nallur Sethuraman in Bengaluru; Editing by Dale Hudson and Jason Neely)