Gold fell on Wednesday as oil prices and world stock markets rose, and expectations for further monetary easing from the European Central Bank prompted some investors to take profits after the metal's rally to 13-month highs last week.
Outflows were seen from bullion-based exchange-traded funds after hefty inflows earlier in the year. The largest, SPDR Gold Shares, said its holdings fell 2.4 tonnes on Tuesday, its biggest outflow in nearly four weeks.
"The ETFs are showing that things are sliding. Some investors are starting to pause those purchases in terms of trying to figure out if this is a relief rally or if things are starting to change," said Brad Sanderson, vice president of Commodities at Cohen & Steers in New York.