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Gold has turned lower, falling below last week's 13-month high on profit-taking as the market's recent rally appeared to lose momentum ahead of the next US Federal Reserve meeting.

Bullion prices rose, and even neared last week's high of $US1,279.60 an ounce, earlier on support from weakness in the US dollar and global shares after Chinese trade data fuelled concerns about the state of worldwide demand.

"It looks like the market is a bit more open to the idea that the Fed will tighten policy this year and that likely has convinced some players that they should take some money off the table," said Bart Melek, head of commodity strategy for TD Securities in Toronto.

The Fed will meet March 15-16, when traders expect to gain insight into the US central bank's next move in monetary policy.

Gold could test $US1,300 an ounce if the Fed keeps rates on hold, said Daniel Ang, analyst at Phillip Futures in Singapore.

Goldman Sachs, however, is sticking to a near-term target of $US1,100 for gold. "The slowing pace of the rally is beginning to cause a few concerns for short-term bullish speculators," said Fawad Razaqzada, technical analyst for Forex.com.

Gold edged lower on Wednesday, slipping with the euro as expectations that the European Central Bank is almost certain to ease policy this week weighed on the single currency.

Investors are also taking profits in the precious metal after its recent rapid rise, which saw it hit a 13-month high last week. But Mark To, head of research at Wing Fung Financial Group, said it may be a brief setback.

"Some correction is in place after the surge in gold prices in the past few weeks, but support could be strong at $1,230," said To.

"I'm optimistic over the medium term because I don't think the Fed is going to raise interest rates very soon despite the recent good economic data," he said, citing policy easing moves by other central banks.

Investors expect the European Central Bank to cut its deposit rate by at least 10 basis points and expand its asset-buying programme at its meeting on Thursday.

Bullion could move towards $1,300 "or even $1,400" by the second quarter, said To, who only sees one U.S. rate hike in 2016, possibly later in the year.