Gold dips on firm dollar, yields

Gold prices slipped on Wednesday as the dollar and U.S. Treasury yields rallied in the run-up to the last inflation reading before this month's policy meeting of the Federal Reserve, reports Reuters.

Spot gold fell 0.1% to $1,850.10 per ounce by 1012 GMT, while U.S. gold futures were flat at $1,851.90.

"The sentiment is quite confused and that is leading to this sideways trading in the markets," said Saxo Bank analyst Ole Hansen, adding gold needs to break above the $1,870 price level to get some fresh momentum.

"Both the yield and dollar developments are not favourable (for gold) ... but against that we have got the World Bank downgrade of global growth ringing in the ears."