Gold holds near $1,200

SINGAPORE, Nov 26 (Reuters): Gold struggled to build on overnight gains on Wednesday as equities rose on optimism over the US economy, while traders nervously awaited cues from the dollar and a Swiss referendum on central bank gold reserves.

The gold market has been in a tight range this week, lacking direction ahead of the U.S. Thanksgiving holiday on Thursday and the Swiss referendum on Sunday.

The metal has seen quiet trading since recovering from a four-and-a-half year low earlier this month, though not everyone believes the worst is over.  

Societe Generale cut its forecast for gold and said prices would average $1,150 an ounce in the fourth quarter and $1,025 next year.

"We expect the gold price to continue to fall as the dollar strengthens further and the gold bear market continues, leading to the metal averaging just $862 between 2016 and 2019," Societe Generale analyst Robin Bhar said in a note.

"We continue to expect investment demand for gold to wane, as the markets believe there are better alternatives, and this will be exacerbated when the U.S. begins to raise interest rates next year, due to better economic conditions and low inflation."

Spot gold was little changed at $1,200 an ounce by 0718 GMT, after gaining 0.3 per cent in the previous session.

Asian stocks edged up after upbeat U.S. economic growth data calmed investor anxiety over a deteriorating global outlook.

The US government upgraded its reading on third quarter gross domestic product to 3.9 per cent on Tuesday from 3.5 per cent reported last month, though the upbeat picture was somewhat marred by other data showing lower consumer confidence and moderation in house price gains.