Gold prices fell from near seven-month highs on a stronger dollar and after a written testimony by a former FBI director to the U.S. Senate was seen as containing few surprises, but declines were limited as uncertainty from the UK election remained. Former Federal Bureau of Investigation Director James Comey said U.S. President Donald Trump asked him to drop a probe of former national security adviser Michael Flynn as part of an investigation into whether Russia meddled in the 2016 election, according to testimony from Comey posted on the Senate Intelligence Committee's website.
Spot gold was down 0.6 percent at $1,285.17 an ounce. On Tuesday, it gained 1.1 percent to its highest since November last year at $1,295.97. U.S. gold futures slipped to settle at $1,293.2.
Dealers said comments late in the session from the head of U.S. Missile Defense Agency saying North Korea ballistic missile advances in the past six months have caused him "great concern" triggered modest buying in gold. In Britain, markets are worried the ruling Conservative party might not get a majority in Thursday's elections. Prime Minister Theresa May wants to increase her majority to strengthen Britain's hand in exit talks with the European Union. Traders are also looking ahead to a meeting of the U.S. Federal Reserve next week.
On technical front, gold lingered at intra-year highs, failing to cross over the key mark of 1,300. The MACD index showed a strong upward momentum, suggesting potential for a move to $1,320 if the level can be breached. While support can found at the 20-day moving average of $1,267.
Silver tracked gold, down 0.5 percent at $17.57 an ounce. Technical indicators showed a strong upward momentum. A uptrend can be expected after some consolidations.

 
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