OREANDA-NEWS. February 12, 2015. Gold fell to a one-month low on Wednesday as the dollar strengthened, while caution prevailed in wider financial markets ahead of a meeting of finance ministers that is set to discuss Greece's future in the euro zone.

Spot prices are down nearly 4 percent so far this month as the strong dollar and expectations of an interest rate rise in the United States weighed on investor sentiment.

Uncertainty over whether a compromise could be found to avoid Greece's exit from the euro zone has held the metal within a range, however.

Spot gold was down 0.8 percent at \\$1,224.15 an ounce by 1506 GMT, having earlier touched its lowest since Jan. 12 at \\$1,223.10 an ounce. US gold for April delivery was down \\$8.00 at \\$1,224.20 an ounce.

Selling of the metal picked up as the dollar's rise to a five-week high against the yen pushed spot prices through key support at \\$1,229, near their 50-day simple moving average and previous February low.

The dollar also rose 0.2 percent against the euro as Greek Finance Minister Yanis Varoufakis headed for his first meeting of euro zone finance ministers, where he will spell out plans to drop his country's bailout and end austerity.

He will seek a "bridge agreement" to buy time until June for a full settlement, but officials are already downplaying the chance of a breakthrough.

"Most markets are in wait and see mode," INTL FCStone analyst Ed Meir said.

"The Greek situation is still very fluid, and there are also talks going on in the Ukraine."

The leaders of France, Germany, Russia and Ukraine were due to attend a peace summit on Wednesday, with Ukraine's pro-Moscow separatists tightening the pressure on Kiev by launching some of the war's worst fighting in an assault on a government garrison.

European stock markets fell on a lower appetite for risk and as traders also eyed comments from Federal Reserve officials on the timing of any rate increase.

The Fed should raise interest rates in June, a top Fed official said on Tuesday, saying the US economy was strengthening and inflation would move back to the central bank's target.

Any hike by the Fed, which has kept rates near zero since 2008 to stimulate the US economy, could further strengthen the dollar and in turn hurt demand for bullion, a non-interest-bearing asset.

Spot silver was down 0.7 percent at \\$16.79 an ounce.

Palladium was flat at \\$768.75 an ounce, while platinum was down 0.9 percent to \\$1,194.70 an ounce.