Gold goes down under pressure from US equities

Gold futures on the COMEX division of the New York Mercantile Exchange fell Wednesday as U.S. equities rebounded.

The most active gold contract for June fell 6.5 dollars, or 0.5 percent, to settle at 1,288.1 dollars per ounce.

Market analysts said traders can definitely blame U.S. equities ' rally for the decline in gold prices Wednesday. The Federal Open Market Committee, the policy-setting arm of the U.S. Federal Reserve, on Wednesday released the minutes of its April meeting after the floor trading of gold market closed in the day, which showed that interest rates will rise. As a result, gold prices fell in electronic trading session. As the minutes also showed the Fed made no decisions on specifically which methods to use, market analysts believe this will be good for gold in the short term, which may have curbed the fall of gold somehow.

Market analysts hold gold will continue to be a good safe haven along with other defensive assets as long as the U.S. equity market continues rising, inflation remains low, and the Fed members continue the talk of delaying rate hikes.

Silver for July delivery lost 6.1 cents, or 0.31 percent, to close at 19.338 dollars per ounce. Platinum for July delivery gained 6 dollars, or 0.41 percent, to close at 1,474.9 dollars per ounce.