Gold steady below $1,300 amid lack of stimulus

London (Nov 13)  Prices of the precious metal were seen trading below the $1,300 level during Asian trading hours on Wednesday amid a lack of incentives.

Gold futures slipped 0.08%, trading at $1,272.30 per troy ounce as of the time of writing, while silver futures lost as much as 0.21% to $20.735 per troy ounce at the same time.

Holdings in the SPDR Gold Trust, the world's biggest gold-backed exchange-traded fund, stood at 868.42 tonnes on Tuesday.

The US dollar index, measuring the strength of the greenback versus a basket of six of its major peers, was down 0.12% at 81.0960 points.

Gold and the greenback usually inversely correlate, as a weaker US dollar makes the precious metal more attractive for foreign investors.

The gold price is likely to break below $1,250 an ounce, as technical analysts from Reuters see it hitting $1,223 an ounce.

Analysts predict the gold price will go lower if physical demand does not pick up as a strong US dollar continues to weigh on market traders' sentiment, while the Federal Reserve (Fed) tapering its easing policy measures in December would also likely push the precious metal lower.

Fed talks continue

Atlanta Fed president Dennis Lockhart spoke on Tuesday, pointing to inflation being stable, but still 'too low.' Both employment and inflation remain crucial for the tapering decision.

According to Lockhart, the tapering 'could very well take place' in December.

Minneapolis Fed President Narayana Kocherlakota held a speech on "Monetary Policy Strategy," confirming his anti-tapering stance. He stated that the labor market remained 'disturbingly weak,' supporting the monetary expansion indirectly and added that 5.5% is the appropriate unemployment target according to him.

The Fed should do 'whatever it takes' to reach its goals and has significant capacity to act so, according to Kocherlakota.