Investing.com - Gold prices fell on Wednesday after U.S. financial institution Goldman Sachs cut its price targets for the precious metal through 2014.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 1.80% at USD1,558.15 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,556.75 and down from a high of USD1,588.45 a troy ounce.
Gold futures were likely to test support USD1,539.85 a troy ounce, Thursday's low, and resistance at USD1,590.05, Tuesday's high.
After a 12-year rally, gold may be due for a breather.
Goldman Sachs earlier trimmed its three-month target for the precious metal to USD1,530 from USD1,615, which sent prices falling on Wednesday.
The bank also cut its six- and 12-month predictions to USD1,490 and USD1,390 from USD1,600 and USD1,550, respectively.
Gold also fell on the release of the minutes from the Federal Reserve's March monetary policy meeting, which revealed board members weren't fully in agreement over when to wind down monetary stimulus measures that push up gold prices as side effects.
"A few members felt that the risks and costs of purchases, along with the improved outlook since last fall, would likely make a reduction in the pace of purchases appropriate around midyear, with purchases ending later this year," the Fed said in the minutes.
"Several others thought that if the outlook for labor market conditions improved as anticipated, it would probably be appropriate to slow purchases later in the year and to stop them by year-end."
Still, monetary stimulus measures will likely end within a year or so, investors concluded, which gave room to fall.
Elsewhere on the Comex, silver for May delivery was down 0.78% at USD27.663 a troy ounce, while copper for May delivery was down 0.56% and trading at USD3.422 a pound.
On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 1.80% at USD1,558.15 a troy ounce in U.S. trading on Wednesday, up from a session low of USD1,556.75 and down from a high of USD1,588.45 a troy ounce.
Gold futures were likely to test support USD1,539.85 a troy ounce, Thursday's low, and resistance at USD1,590.05, Tuesday's high.
After a 12-year rally, gold may be due for a breather.
Goldman Sachs earlier trimmed its three-month target for the precious metal to USD1,530 from USD1,615, which sent prices falling on Wednesday.
The bank also cut its six- and 12-month predictions to USD1,490 and USD1,390 from USD1,600 and USD1,550, respectively.
Gold also fell on the release of the minutes from the Federal Reserve's March monetary policy meeting, which revealed board members weren't fully in agreement over when to wind down monetary stimulus measures that push up gold prices as side effects.
"A few members felt that the risks and costs of purchases, along with the improved outlook since last fall, would likely make a reduction in the pace of purchases appropriate around midyear, with purchases ending later this year," the Fed said in the minutes.
"Several others thought that if the outlook for labor market conditions improved as anticipated, it would probably be appropriate to slow purchases later in the year and to stop them by year-end."
Still, monetary stimulus measures will likely end within a year or so, investors concluded, which gave room to fall.
Elsewhere on the Comex, silver for May delivery was down 0.78% at USD27.663 a troy ounce, while copper for May delivery was down 0.56% and trading at USD3.422 a pound.