Spot gold fell further on Wednesday after U.S. Federal Reserve officials acknowledged risks from overseas and a weak start to the year at their March meeting, according to minutes from the meeting released on Wednesday.
The meeting concluded with the Fed opening the door to a June rate hike, and the minutes said that ``several participants'' went on record saying they expected upcoming economic data would warrant an initial rate increase that month.
But even those less certain about the June timing felt the economy had improved enough for the Fed to shift into a meeting-by-meeting assessment of whether rates should move higher.
Spot gold was at $1,200 an ounce, down 0.9 percent. Bullion climbed to its highest level since Feb. 17 at $1,224.10 on Monday, after weaker-than-expected U.S. nonfarm payrolls cooled prospects of an earlier interest rate move.
U.S. gold for June delivery closed down $7.50 an ounce at $1,203.10.