Gold dipped on Wednesday as a buying spree paused after four straight sessions of gains, but the stronger euro and a bullish price outlook from metals consultancy GFMS provided support. "The market tone is a bit better, but we have had a bit of risk-back-on in the last day or two. So, I think that is hurting gold somewhat," said Peter Buchanan, senior economist at CIBC World Markets in Toronto.
Spot gold was off 0.2 percent at $1,657.16 an ounce by 3:09 EDT (1909 GMT). US June gold futures finished 40 cents lower at $1,660.30 per ounce.
On technical charts, gold's losses held well above long-term channel support, steadying above the $1,611 per ounce low of last week.
Metals consultancy GFMS, a unit of Thomson Reuters, said in its annual outlook for the gold market that a record high price above $2,000 an ounce next year could mark the peak of the precious metal's bull run of more than decade, as monetary policy in major economies starts to tighten.
For now, gold could drive above $2,000 on concerns over the euro zone debt crisis and the idea of more US monetary easing, GFMS Chairman Philip Klapwijk told Reuters.
Silver fell 0.8 percent to $31.51 an ounce, pushing the number of ounces of the white metal needed to buy one ounce of gold up to 52.5 from 50 just one week ago, reflecting gold's relative out performance. Platinum and palladium were lower, with platinum down 1.0 percent at $1,576.30 an ounce and palladium off 0.7 percent at $632.28 an ounce.