Gold fell to its lowest in three weeks on Wednesday on higher equities and as the dollar hit a four-month high following strong U.S. economic data, which raised expectations that the Federal Reserve may raise rates before the end of the year.
Spot gold fell as much as 1.4 percent to $1,313.20 an ounce earlier was last down 1.09 percent at $1317.17 an ounce. U.S. gold was down 1.07 percent at $1,318.10 an ounce. Gold futures settled at $1319.30 an ounce.
A fund that tracks gold mining companies was down 4.3 percent.
The dollar hit its highest for four months, still benefitting from data on Tuesday showing U.S. housing starts surged more than expected in June, underpinning a theme of strength in the U.S. economy.