Gold is stable with the dollar falling from its highest level in months

Stabilized gold prices on Wednesday with the US dollar fell from its highest level in 16 months , which touched earlier in the week, amid the rise of the euro and the pound after reaching a draft agreement for the British secession from the European Union. 

At 0754 GMT the spot price of gold was stable at $ 1202.08 an ounce. 

Prices fell earlier in the session to their lowest level since October 11 at $ 1195.90 an ounce.

US gold futures rose 0.1% to $ 1203.9 an ounce. 

"There has been some selling in the US dollar," said John Sharma, economist at National Australia Bank. "The uptrend has declined, helping gold to improve." 

The decline in the dollar reduces the cost of gold to other currency traders.

"We see investors and speculators grabbing gold because it has the potential to rise to 1230 and 1240 dollars," Sharma said. 

The dollar index, which measures the strength of the greenback versus a basket of six major currencies, fell 0.2% to a 16-month high. 

Silver rose 0.1% on spot trades to $ 14 an ounce. 

Palladium fell 0.5% to $ 1105.25 an ounce, while platinum fell 0.1% to $ 834 an ounce