Spot gold fell 1.08 percent to $1,324 per ounce at 1:56 p.m. ET, having hit $1,346.73 in the previous session, its highest since April 19.
U.S. gold futures settled $20.10 lower at $1,327.80.
· "Most people had expected the Fed to remain dovish through the end of the year," said David Meger, director of metals trading at High Ridge Futures.
"Some comments in regards to the Fed being split on the rate hike (decision) before the end of the year toned down the dovish outlook for rates."
· In the minutes of its latest meeting, the Fed said the U.S. economy and its labor market remained strong, prompting some expectations of at least one more rate hike this year. Higher rates tend to weigh on non-yielding gold.
· Also, "there are new reports out today that the ongoing U.S.-China trade talks are going well. That's allowing a bit more trader and investor risk appetite to be present in the marketplace," Jim Wyckoff, senior analyst at Kitco Metals, wrote in a client note.
The U.S. and China have started to outline commitments in principle on the stickiest issues in their trade dispute, marking the most significant progress yet, according to sources familiar with the negotiations.
On the technical front, gold was within striking distance of the much-discussed $1,350-level, a key resistance over the years, but has failed to breach it, Meger added.
· Meanwhile, palladium fell 1.38 percent to $1,468 per ounce, after having briefly surpassed the $1,500 level for the first time on Wednesday.
Among other precious metals, platinum fell 0.3 percent to $820, while silver fell about 1.37 percent to $15.81.
Reference: CNBC
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