Gold traded close to a four-month low on Wednesday morning as global stocks reached a six-month peak, with a stronger American dollar further affecting the precious metal, Reuter reported.

Spot gold was trading at 1,278.15 per ounce, losing 1 percent. The yellow metal slumped to $1,272.70 an ounce in the previous session, hitting its lowest level since late December.

U.S. futures traded at $1,277.65 per ounce at the time of writing this article, up .03% percent.

Meanwhile, stocks across the world rose to a six-month high on Tuesday. Positive economic data from Germany and China boosted the stock market.

While gold prices are currently struggling to go beyond $1300 per ounce, experts believe that gold prices will likely rise as high as $1400 an ounce later this year. They say the likely rise in gold prices will be enhanced by the Federal Reserves' less aggressive position on interest rates and the lingering concerns over the global economy amid the current trade tensions between the United States and China.

In a related matter, Bloomberg reported on Monday that Venezuela has reportedly sold about $400 million worth of gold amid tough economic sanctions on the troubled Latin American country.

Source: Reuters, CNBC