Gold treads water after seven-day losing streak on stimulus doubts

The metal has lost about 3 percent since October 28 and has logged its longest losing run since mid-May, when it dropped 8 percent in seven days. Analysts believe gold could break below the $1,300 mark ahead of the U.S. nonfarm payrolls report on Friday.

The timing of any tapering of the Fed's $85 billion in monthly bond purchases has been a key factor driving gold prices this year. Gold has lost a fifth of its value this year as an improving economy has prompted investors to move to stocks and the Fed to think about cutting back stimulus.

Recent mixed economic data has cast doubts over the exact timing, leaving markets to speculate whether the Fed would announce tapering before year-end.

"The overall sentiment is that the economic recovery is steady but it has lost some steam," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.

"Investors are cautious, so I think gold will move towards $1,300 and stay around that for consolidation," To said, adding that tapering would not be implemented anytime soon as unemployment rates were still high.

Spot gold was nearly flat at $1,311.45 an ounce by 0228 GMT on Wednesday.

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