Gold slipped to a one-month low below $1,700 an ounce on Wednesday as a weaker price forecast by Goldman Sachs triggered some fund liquidation, offsetting news of fresh central bank buying. Bullion later rebounded off its lows to end down 0.2 percent. Earlier in the session, it was under technical selling below its 100-day moving average and after it broke through support at Tuesday's low at $1,690.64.
Gold was pressured after Goldman Sachs cut its 2013 gold outlook and said the metal's current bull cycle will likely turn next year as rising real interest rates and better growth offset monetary stimulus from the US Federal Reserve. Spot gold was down 0.2 percent at $1,693.65 an ounce by 3:37 pm EST (2037 GMT), having earlier hit a low of $1,684.40, the weakest since November 6.
US COMEX gold futures for December delivery settled down $2 an ounce at $1,693.80, with trading volume more than 20 percent below its 30-day average, preliminary Reuters data showed. Among other precious metals, silver was down 0.2 percent at $32.86 an ounce, platinum inched up 40 cents to $1,579.50, and palladium edged up 0.5 percent at $681.
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