Gold prices eased gains in early trade on Wednesday, with the precious metal ending the session lower as the dollar recovered from a three-year low against a basket of currencies.
Spot gold fell 0.77 percent to $ 1328.20 an ounce late in the session after hitting a record high of $ 1343.91 earlier in the session.
Gold touched its strongest level since September 8 at $ 1344.44 an ounce on Monday.
Gold in US futures fell 0.1 percent to $ 1335.40 an ounce.
The dollar index, which tracks the performance of the greenback against a basket of major currencies, rose about 0.3 percent to 90.656 after hitting its lowest level since December 2014 at 90.113 earlier in the session.
It is widely expected that the Federal Reserve will raise interest rates several times this year but at a gradual pace.
Gold is heavily affected by the increase in US interest rates, which leads to higher opportunity costs for holders of the yellow metal while the dollar strengthens the metal.
Among other precious metals, palladium rose 2.02 percent to $ 1116.10 an ounce after falling nearly 3 percent on Tuesday after hitting a record high of $ 1138 an ounce on Monday.
The palladium continues to rise as the demand for the metal from the automotive sector fuels supply concerns.
Silver fell 1.14 percent to $ 16.10 an ounce, while platinum rose 0.22 percent to $ 1,000.40 an ounce after hitting its highest since September 8 at $ 1006.60.