Gold falls on profit taking

Gold futures on the COMEX division of the New York Mercantile Exchange Tuesday went down for the first time in seven trading sessions on profit taking.

The most active gold contract for August delivery fell 3.3 dollars, or 0.26 percent, to settle at 1,272 dollars per ounce.

Easing of tension in Iraq as Iraqi Government began to fight back the ISIS forces also dampened gold.

Gold sank further as a report released by U.S. Labor Department showed that U.S. consumer price index rose a seasonally adjusted 0. 4 percent in May after a 0.3-percent gain in April. Normally this measure would support gold, but some market analysts believe that it confirms U.S. Central Bank's plan to further cut bond-buying.

U.S. Commerce Department also released a report Wednesday, showing that construction on new U.S. homes fell by 6.5 percent to an annual rate of one million units in May from 1.07 million units in April.

Investors are closely watching for clues from the U.S. Federal Reserve's two-day policy meeting that opened Tuesday regarding inflation and the timing for a planned interest-rate hike.

Silver for July delivery gained 1.7 cents, or 0.09 percent, to close at 19.732 dollars per ounce. Platinum for July delivery climbed 4 dollars, or 0.28 percent, to close at 1,443.1 dollars per ounce.