Gold prices fell sharply on Wednesday, pressured by a stronger US dollar. A rising dollar typically weighs on gold, as it makes the metal more expensive for buyers using other currencies.

The spot price of gold fell to $1,312.60 an ounce, while US gold futures settled down 1.2 percent at $1,312.10 an ounce.

The dollar index, which measures the greenback against a basket of six major currencies, rose 0.3 percent.

“The stronger dollar is definitely weighing on gold,” said one analyst. “We’re also seeing some profit-taking after gold’s recent rally.”

Gold had risen in recent weeks amid concerns about geopolitical tensions and uncertainty over the global economic outlook. However, those concerns have eased somewhat, leading some investors to reduce their gold holdings.

Market participants are also keeping a close watch on the Federal Reserve, which is expected to begin raising interest rates in the coming months. Higher interest rates would likely boost the dollar and further weigh on gold.

Other precious metals also declined on Wednesday. Silver fell 1.5 percent to $20.82 an ounce. Platinum fell 0.8 percent to $1,416.25 an ounce. Palladium fell 0.6 percent to $850.50 an ounce.