Gold is retreating on the strength of the dollar, but weakness in stocks limits losses
(Reuters) - Gold prices fell on Wednesday as the dollar rose, but the yellow metal remained near its two-week high of the previous session as stocks fell on concerns about global growth and trade tensions between the United States and Europe.
Spot gold fell 0.2 percent to $ 1302.36 an ounce by 0518 GMT after hitting a 28-year high of $ 1306.09 in the previous session.
Gold futures lost 0.2 percent to $ 1306 an ounce.
As the dollar rose slightly against its main rivals, Asian stocks retreated from an eight-month high above the major resistance level of $ 1,300.
The strong dollar raises the cost of gold for investors with other currencies.
US President Donald Trump on Tuesday threatened to impose charges on EU products worth $ 11 billion to open a new front in his global trade war.
Investors' concern over the International Monetary Fund (IMF) cut on Tuesday raised the outlook for global economic growth for 2019 and warned of a further slowdown in growth.
Gold is used as a relatively safe investment during periods of political and financial uncertainty.
On other precious metals, platinum rose about 0.3 percent to $ 889.55 an ounce. It hit its highest since May 2018 at $ 914.74 on Monday.
Palladium settled at $ 1388.75 an ounce, while silver fell 0.2 percent to $ 15.18.