BENGALURU: Gold prices fell over 1% on Wednesday as the gold rally cooled with investors booking profits, while focus shifted to minutes from the Federal Reserve’s recent policy meeting for more clarity on the central bank’s rate trajectory. Spot gold fell 1.3% at $2,389.39 per ounce as of 1419 GMT. Prices had scaled a record high of $2,449.89 on Monday.

US gold futures were down 1.4% at $2,392.70. “Anytime you have a rally as long and as dramatic as gold, naturally you can see some profit taking,” said Everett Millman, chief market analyst with Gainesville Coins, adding that he expects gold to consolidate and retest the $2,300 level.

Gold is also being held back by delayed rate cuts and unfulfilled recession fears along with selling by western investors, Millman said. “There is quite a bit of evidence that investors in the West don’t have nearly the exposure to gold that you’d expect at these prices.”

Dropping what had been explicit forecasts about the likelihood of interest rate cuts this year, Powell and other Fed officials are instead focusing attention on broadly different near-term paths the economy might follow and their likely reaction to each case.

The minutes from the Fed’s May policy meeting, due at 1800 GMT, could provide more details on the shift in approach. Dovish Fed comments in the transcript hinting close to tackling inflation might offer marginal support to gold, Millman said.