Spot gold was steady at $1,338.76 per ounce as of 0753 GMT, having touched $1,346.73 per ounce in the previous session, its highest level since April 19. US gold futures were down 0.5 percent at $1,341.80 an ounce. "There are both technical and fundamental reasons for this pull back in gold prices. It is under some technical selling pressure at the moment," said Margaret Yang, market analyst with CMC Markets, Singapore.
"It was a clearly dovish statement by the Fed," she said adding that the dollar rebounded after the minutes and gold traders are now taking profits.
Spot gold may retrace into a range of $1,321-$1,331 per ounce and it seems to have peaked around a resistance at $1,351 per ounce, according to Reuters analyst Wang Tao.
Markets were still on the lookout for signs of progress in the latest round of trade negotiations between the United States and China, amid expectations that US President Donald Trump will meet Chinese President Xi Jinping next month to strike a deal.
"After finding major support at the $1,300 per ounce mark, (gold) prices have witnessed an upthrust, and moved past the invincible $1,326 per ounce mark," said Sugandha Sachdeva, vice-president, metals, energy and currency research, Religare Broking Ltd. "This has set the path for gold to traverse on the upwards trajectory towards $1,365 per ounce in the near-term."