Nov 14 (Reuters) – Gold fell on Wednesday as the dollar held near a multi-month high, buoyed by interest from investors seeking cover from sliding stocks and by prospects for higher U.S. interest rates. Spot gold was down 0.2 percent at $1,200.18 per ounce at 1121 GMT. Prices had slipped to their lowest since Oct. 11 at $1,195.90 in the previous session. U.S. gold futures fell 0.1 percent to $1,200.6 per ounce. “The continuing dollar strength is weighing on gold. What people are doing is selling everything to buy the dollar and that includes gold,” said Alasdair Macleod, head of research at GoldMoney.com. The dollar index, a gauge of its value versus major currencies, was firm near a 16-month high, after retracing slightly earlier in the session as investors took profits, prompted by gains in the euro and sterling on the back of growing confidence about a draft Brexit deal. The British cabinet will meet at 1400 GMT to consider the withdrawal agreement.

Meanwhile, stocks fell on worries about a slowdown in global economic growth. Gold, considered a safe haven asset, has fallen about 12 percent since hitting a peak in April as investors flocked to the dollar instead, with the U.S.-China trade war unfolding against a background of higher U.S. interest rates. Market participants will also be keeping a close eye on Federal Reserve Chairman Jerome Powell’s appearance in the Federal Reserve Bank of Dallas Global Perspective Speaker Series at 2300 GMT for clues on the U.S. monetary policy outlook. The dollar has benefited over the last week from expectations of further U.S. interest rate hikes. “Gold is likely to be range bound for the reminder of the year … progress for a sustained rally doesn’t appear to be the emphasis,” said Capital Economics analyst Ross Strachan. Spot gold may bounce to $1,211 per ounce, as it has found a support around $1,195, said Reuters technical analyst Wang Tao.

Meanwhile, holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, fell 0.11 percent to 761.16 tonnes on Tuesday. Among other precious metals, silver was down 0.2 percent to $13.95 per ounce, having matched its lowest since Jan. 21, 2016, at $13.85. Palladium fell 0.5 percent to $1,104.65 per ounce, while platinum was down 0.3 percent at $832.10 an ounce.