2017.12.0703:08:00UTC+00Gold Prices Flat as Dollar Holds Firms

Gold prices were mostly steady on Thursday amid a strong dollar, trading near a two-month low notched earlier this week.

Spot gold was flat at $1,263.21 per ounce. It recorded its lowest since Oct. 6 at $1,260.71 on Tuesday.

U.S. gold futures were also flat at $1,265.70.

The dollar rose versus its currency peers, as optimism towards U.S. lawmakers making progress on tax legislation continued to grow.

According to INTL FCStone analyst Edward Meier, the precious metal could move marginally lower heading into next week's Federal Reserve meeting as investors would be nervous about the Fed's policy wording going forward.

Spot gold is on track to break support at $1,262 an ounce, and fall to the next support level at $1,250, Reuters technicals analyst Wang Tao said.

According to the World Gold Council, global holdings in gold-backed exchange-traded funds (ETF) increased by 9.1 tonnes to 2,357 tonnes in November, with net inflows coming from Europe as the U.S. dollar dropped.

India's gold imports in November almost halved from the previous year as a rise in the price of the yellow metal curbed retail buying for weddings, industry officials and analysts said.