Gold eased on Wednesday due to a slight uptick in the dollar and profit-taking after bullion touched a record high in the previous session on expectations of a Federal Reserve interest rate cut.
Spot gold was down 0.2% at $3,683.19 per ounce, as of 0515 GMT, after hitting a record high of $3,702.95 on Tuesday.
US gold futures for December delivery eased 0.2% to $3,719.50.
"Gold's ascent to $3,700 was aided by the decline in the USD and by bets that the Fed may signal that follow-up rate cuts are likely to arrive before year-end," KCM Trade Chief Market Analyst Tim Waterer said.
"Profit taking around the $3,700 level saw the precious metal dip back below this mark. But should the Fed adopt a particularly dovish tone in their meeting, gold could be making another move higher."
The dollar, edged up 0.1% after dropping to a more than two-month low on Tuesday. Meanwhile, the benchmark US 10-year Treasury yields were hovering near a more than five-month low.
Data on Tuesday showed US retail sales increased more than expected in August, but a weakening labour market and rising prices because of tariffs pose a downside risk to continued strength in spending.
The US central bank is expected to deliver a quarter-percentage-point rate cut later in the day to support the labour market. Remarks from Fed Chair Jerome Powell will be closely watched to gauge the pace of further easing.
Lower rates reduce the opportunity cost of holding non-yielding bullion.
US President Donald Trump has called for Powell to enact a "bigger" rate cut.
SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.32% to 979.95 metric tons on Tuesday, from 976.80 tons on Monday.
Elsewhere, spot silver slipped 1.4% to $41.96 per ounce, platinum gained 0.3% to $1,395.05, and palladium rose 0.3% to $1,180.08.
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