While signals indicate the U.S. economy is growing stronger, the commerce department indicated new home sales last month in the nation amounted to 328,000, which exceeded the 319,000 forecast by a Bloomberg survey. But, with the U.S. Federal Reserve set to adjourn two days of meetings on Wednesday, focus is sharpening on whether the institution led by Ben Bernanke will purchase more assets, also known as quantitative easing.
"Today of all days we can't avoid talking about quantitative easing," analyst Nic Brown with Natixis told Reuters on Wednesday. "I wouldn't be surprised to see gold trading a fair bit lower tomorrow if the Fed gives no hints about imminent QE."
At 11:08 a.m. on Wednesday, gold futures fell 0.32 percent, a $5.30 slip to $1,638.50 per troy ounce.
Acquisitions of the yellowish metal in India, which China displaced earlier this year as top consumer of bullion, have been light for a Hindu festival that typically commands more purchasing, according to Reuters.