Gold slips further below $1,200 as fund outflows resume

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Gold dipped for a second session on Thursday, holding below $1,200 an ounce, as outflows resumed from the top bullion exchange-traded fund and traders remained cautious before an upcoming Swiss referendum on central bank bullion assets.

A weaker dollar after lackluster U.S. data, however, checked losses in gold which is seen as a safe-haven asset.

"Gold is stuck on either side of $1,200 with a break of $1,190 or $1,205 needed for the next leg in either direction," said Jason Cerisola, metals dealer at MKS Group.

"(Precious) metals are likely to remain quiet ahead of the U.S. holiday and the Swiss referendum on the weekend," he said.

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Spot gold slipped 0.1 percent to $1,195.90 an ounce by 0253 GMT, but trading is expected to be thin with the U.S. markets closed for Thanksgiving.

The metal dipped 0.3 percent on Wednesday as bearish market sentiment offset a drop in the U.S. dollar.

U.S. consumer spending rose modestly in October and a measure of business spending plans fell for a second straight month, suggesting some slowing in the pace of economic growth. But other data on Wednesday showed consumer confidence approaching a 7-1/2-year high in November.

Outflows from SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, resumed after a week, dragging on prices of the precious metal. Holdings fell 0.29 percent to 718.82 tons on Wednesday - near six-year lows.

Read MoreGold price eyed as investors await Swiss vote

Traders are now waiting for Sunday's Swiss vote on central bank gold reserves for more trading cues.

The vote is aimed at preventing the Swiss National Bank from offloading its gold holdings and obliging it to hold at least 20 percent of its assets in gold, compared with 8 percent last month. The most-recent opinion poll showed support among Swiss voters for the initiative had slipped to 38 percent.

If a 'yes' vote is passed, the Swiss central bank would have to buy about 1,500 tons of gold over the next few years, analysts say, boosting bullion prices.