Gold prices flattened on Wednesday, giving back earlier gains as oil prices fell and shrugging off support from the weak U.S. dollar and shares as investors remained cautious ahead of an anticipated Federal Reserve rate hike next week.
The U.S. central bank is widely expected to raise interest rates for the first time in nearly a decade at its next policy meeting on Dec. 15-16.
Higher rates should dent demand for non-interest-paying gold, which has already lost 9 percent of its value this year and is on track for its third year of losses.
Spot gold rose 1 percent to a session high of $1,085.20 an ounce but was flat at $1,074.31 an ounce. The metal is around $35 higher than a near-six-year low reached last week. U.S. gold futures for February delivery settled up $1.20 at $1,076.50 an ounce.