Gold prices settled nearly 2 percent lower on Wednesday as investors took profits from a run-up spurred by geopolitical concerns after Russian President Vladimir Putin urged Ukrainian separatists to postpone a referendum and said he was pulling troops back from their common border.
Putin called on pro-Moscow separatists in Ukraine to postpone a vote on secession just five days before it was to be held, potentially pulling Ukraine back from the brink of dismemberment. He also announced he was pulling Russian troops back from the Ukrainian border.
However, the White House said it has seen no evidence that Putin has pulled Russian troops back from the Ukrainian border, and said it wants a referendum on secession to be cancelled, not merely postponed.
U.S. gold futures for June delivery ended 1.5 percent lower at $1,288.90 an ounce, with trading above its 30-day average, preliminary Reuters data showed.
Spot gold was last down 1.3 percent at $1,299 an ounce, on track for its biggest one-day drop in three weeks.