Gold futures fell near session lows Wednesday afternoon as minutes from the Federal Reserve's April meeting showed that a June interest rate increase was likely if economic data improved.
Just before the minutes were released, spot gold dropped 0.5 percent to $1,273.07 per ounce, after gaining 0.5 percent in the previous session. U.S. gold futures were down 0.19 percent to $1,274.50.
Gold dropped on Wednesday after strong U.S. economic data and comments from the central bank officials bolstered expectations that the Federal Reserve could soon hike interest rates.
A Fed policymaker said on Tuesday he will push for an interest rate hike in June or July, and two others predict up to three rate increases this year.
Gold is highly sensitive to rising rates, which lift the opportunity cost of holding non-interest yielding bullion.