Spot gold fell 0.7% to $1,864.04 per ounce by 12:29 p.m. EDT (1629 GMT) after hitting its lowest level since May 17 at $1,848.49.
“There’s the possibility that the Fed may indicate that they’re going to start tapering, which should weigh on gold,” Streible said.
“We see risks for further weakness in prices as (Fed) taper talk saps interest in the yellow metal at a time when flows are not particularly supportive,” TD Securities analysts said in a note.
Speculators reduced their net long positions in COMEX gold in the week ended June 8.
Elsewhere, silver was up 0.2% at $27.94 per ounce, while palladium fell 0.7% to $2,755.89 and platinum rose 1.2% to $1,164.15.
Phillip Streible, “, ” Streible, Nakul Iyer, Steve Orlofsky, Matthew Lewis
U.S . Federal, Blue, TD Securities