Gold fell from its highest levels in more than a week on Wednesday after Italy signaled its willingness to reduce its budget deficit and debt, which calmed investor fears and spurred a broad appetite for riskier assets.
At 1219 GMT, the spot gold price fell 0.1 percent to $1,201.01 an ounce, after hitting its highest level since September 21 at $1,208.31 earlier in the session.
And US gold futures fell 0.2 percent, to record $ 1,204.80 an ounce.
European stocks and Italian bonds rose as some of the fears that shocked markets this week were allayed by signs that Rome is ready to cut the country's budget deficit and debt in the coming years.
Gold can be used as an alternative investment during times of political and financial uncertainty.
Gold prices fell in the last six months, losing more than 11 percent, mainly due to the rise in the dollar. The greenback is benefiting from a buoyant economy, higher interest rates in the US and concerns about the global trade war.
Among other precious metals, silver rose 0.3 percent in spot transactions, to $14.68 an ounce, hovering near the $14.91 level recorded in the previous session, the highest in more than a month.
Platinum rose 0.5% to $830.98 an ounce, while palladium fell 0.1% to $1,050.98.
Reuters (Bengaluru)
