Globally, spot gold was trading lower at Dollars 1,408.57 an ounce after hovering near six-year highs on Tuesday, while silver was down at USD 15.22 an ounce in NY.
Gold has leapt 10% in four weeks, breaking above technical resistance which has thwarted every rally for half a decade to rise above $1,400 an ounce for the first time since 2013.
"If lower United States bond yields have historically signaled an economic downturn, then the absolute weight of global negative yielding bonds must be viewed as the harbinger of economic doom and gloom, which is perhaps the most precise and most convincing signal enveloping gold markets now", Stephen Innes, managing partner at Vanguard Markets, said in a note.
The greenback was down against most other currencies, weighed by expectations the Federal Reserve will cut interest rates as soon as July, while bitcoin held above US$11,000 after breaking the marker for the first time in 16 months. US gold futures were down 0.6 percent at $1,410.35 an ounce.
Lower interest rates reduce the opportunity cost of holding non-yielding bullion by helping pushing down bond yields. Futures on the S&P and Nasdaq were also marginally down.
U.S. President Donald Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other top Iranian officials with sanctions on Monday to increase pressure on Iran after Tehran's downing of an unmanned American drone.
Meanwhile, global stock markets have hit record highs, leading many to expect a brutal correction.More news: Multiple iTunes Libraries Not Supported in First Betas of macOS Catalina
More news: ‘The Office’ to Stream Exclusively on NBCUniversal Service Beginning in 2021
More news: See Jeffrey Wright's Felix Leiter Return In First Bond 25 Set Video
"The fact that other precious metals are completely left behind indicates how there is a scramble to get into gold with lower rates, growth concerns and tensions in the Middle East".
Against that backdrop, speculative investors have piled in.
Lower purchases by India, world's second biggest consumer after China, could limit a rally in global prices that hit a 6-year high earlier this week. That is equivalent to nearly 19 million ounces, worth some $26 billion.
"A lot of momentum buying kicked in after gold took out the 2014 high", said Saxo Bank analyst Ole Hansen.
Spot gold was down 0.8% at $1,411.50 per ounce as of 1248 GMT, after falling as much as 1.5% to $1,401.98. "It feeds on itself, and that means you could have a new trading range", said George Gero, managing director at RBC Wealth Management, who now sees gold trading between $1,375 and $1,450 in the short term.
Traders were also keeping tabs on developments in the China-US trade standoff as the leaders prepare for crunch talks on the sidelines of the G20 in Osaka.