Gold prices surrendered early gains to hit one-month lows on Wednesday as disappointment at its failure to benefit from rising stock markets helped push the metal through key chart levels.
Spot gold fell to a low at $1,687.04 an ounce and was last down 0.7 percent at around $1,685 an ounce. U.S. gold futures were last down 0.2 percent an ounce at $1,692 per ounce.
Goldman Sachs said on Wednesday gold's current price cycle will likely turn next year as a rise in real interest rates on the back of improved growth offsets any further balance sheet expansion from the Federal Reserve.
The bank also cut its 2013 gold forecasts.
That said, do you agree with Goldman's bearish call on gold? Vote now in our "Futures Now" poll!
— Reuters contributed to this report