Gold futures titled lower in American trade off August 13 highs, while the index recovered modestly from July 31 lows after upbeat US growth data.

As of 02:11 GMT, gold futures due in December 0.31% to $1,210.60 an ounce, moving away from two-week highs, while the dollar index climbed 0.14% to 94.86 off four-week lows.

Earlier US data showed the economy grew 4.2% in the second quarter of 2018 according to the preliminary GDP reading, the fastest such pace since the third quarter of 2014, and beating estimates of 4.0%, while improving from the advance reading's 4.1%, and the first quarter's 2.0% growth rate.

US pending home sales fell 0.7% m/m in July, compared to a 1% increase in June, revised from 0.9%, and missing estimates of a 0.3% increase.

On a yearly basis, pending sales fell 0.5%, paring a 4.0% yearly decline in June, and beating estimates of a 2.5% drop.

World Gold Council

The World Gold Council recently forecast an increase of demand on the yellow metal in the second half of 2018 as inflation rises and the global trade war takes firmer shape and hurts currencies.

Despite similar concerns in the first half of the year, gold prices were stymied by dollar's strength as the Federal Reserve tightened monetary policy on the back of strong US data.

Otherwise, Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, fell 4.71 tonnes on Tuesday to 759.87 tonnes, the lowest since February 2016, with gold prices on track for the fifth monthly decline in a row, the longest such streak in over five years.