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Gold fell on Wednesday finding little impetus from easing equities as the dollar rose to a four-month high on the back of better-than-expected U.S. housing data.

"Because gold prices have risen so quickly between February and June, I suppose it is taking a breather at the moment," said Vyanne Lai, an economist at National Australia Bank.

"Generally, we do see global environment being relatively supportive of gold at the current level in the next three months at least."

Gold has rallied 26 per cent this year as investors flocked to haven assets amid volatility in financial markets and turmoil spurred by the UK's vote to leave the European Union.

The International Monetary Fund scrapped its forecast for a pickup in global growth this year, citing Brexit.

While bets on a Federal Reserve rate increase have crept up this month amid improving US data, traders are still pricing in less than even odds of an increase until mid-2017.

"The probability of a U.S. Federal rate hike has increased as of today. Some expectations of a rate hike have come back," said OCBC Bank analyst Barnabas Gan.

"There are still some headwinds to growth and this may lift safe-haven demand should the implications of Brexit start to unwind."

Reference: BLOOMBERG, Reuters