Gold falls to one-year low as US dollar strengthens

Gold prices slipped to their lowest in a year on Thursday, as the dollar firmed after US Federal Reserve chairman Jerome Powell supported a steady hike in interest rates.

Spot gold was down 0.2 percent at $1,223.56 an ounce, after yellow metal fell to its lowest since July last year at $1,220.41 an ounce earlier in the day. US gold futures for August delivery slipped 0.4 percent lower at $1,223.20 an ounce.   

"Gold market is just following the US dollar, the dollar is strong so it's pushing the market down," Ronald Leung, chief dealer at Lee Cheong Gold Dealers, told Reuters.

Spot gold has found a support zone of $1,220-$1,226 per ounce and may hover above this zone or bounce towards a resistance at $1,237, Reuters technical analyst Wang Tao added.

Earlier, ABN Amro had predicted that gold price will average $1,225 an ounce in September.