Gold loses ground, dollar falls off 1-1/5 year peak

Gold futures tilted lower in American trade off December 11 highs, while the dollar index retreated from June 2017 highs, following earlier US housing data today. 

As of 03:36 GMT, gold futures due in February shed 0.10% to $1,250.60 an ounce off two-week highs, while the dollar index shed 0.15% to 96.95. 

Earlier US data showed building permits rose to an annualized 1.33 million units in November, besting estimates of 1.27 million, and compared to October's revised 1.27 million. 

US housing starts rose to an annualized 1.26 million units November, beating estimates of 1.23 million, and up from October's revised 1.22 million. 

The Federal Open Market Committee is meeting today and tomorrow for the periodic policy meeting, with analysts expected the fourth rate hike of the year to below 2.25%. 

The Fed will also release three-year forecasts for growth, inflation, unemployment, and interest rates.