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LONDON. — Gold climbed on Wednesday as funds bet prices would find short-term support at $1,200 per ounce, but a stronger dollar and expectations for increases in U.S interest rates limited gains.

Spot gold was up 0,1 percent at $1,204.43 an ounce at 1050 GMT. Prices hit their highest since August 10 at $1,214.28 on Tuesday, but closed 0,8 percent lower as US Treasuries rose after the United States and Mexico struck a trade deal.

Analysts and traders are closely watching the psychologically important level of $1,200. Gold dipped below that this month for the first time since March 2017, giving it momentum to touch a low of $1,159.96.

Gold is still pinned down by a stronger dollar, which makes commodities it is priced in more expensive for holders of other currencies and can cap a rising gold market.

The dollar rose as relief about a U.S.-Mexico trade deal gave way to concern among investors that the conflict over trade between the United States and China was not about to end soon.

Adding to gold’s woes are expectations for further U.S. interest rate increases this year, record bets on prices falling and liquidations in exchange-traded funds (ETFs), analysts said. — Reuters