Gold prices reversed earlier gains on Wednesday after the U.S. Federal Reserve's policy announcement that it will begin in October rolling off its $4.5 trillion balance sheet.
A threat by U.S. President Donald Trump to "totally destroy" North Korea also helped to push the dollar lower while stimulating demand for gold, seen as a safe investment in times of uncertainty. A weaker dollar makes gold cheaper for holders of other currencies.
Spot gold was down 0.76 percent at $1,301.24 an ounce. Gold was trading up slightly at $1,313.88 an ounce in the minutes ahead of the Fed's announcement.
U.S. gold futures for December delivery settled down at $1,316.40 an ounce. It traded up before the Fed announcement, trading as high as $1,319.80.
The market did not raise its benchmark interest rate from its current 1 percent to 1.25 percent target, but indicated that one more hike likely this year. Officials also projected one fewer rate hike than initially forecast between now and 2019.
As the forecast stands with this week's revisions, there would be three increases in 2018 and two in 2019.