Weakening physical demand and slowing speculative flows into gold, both of which began before the Fed meeting, could also help to drive a further pullback, Ghali added.
Spot gold fell 0.7pc to $1,863.98 per ounce by 1:43 p.m EDT (1743 GMT) after hitting its lowest level since May 17 at $1,848.49. U.S. gold futures settled 0.7pc down at $1,865.9.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings rose 0.6% to 1,043.16 tonnes on Wednesday from 1,037.33 tonnes on Tuesday.
The failures indicate an extension of the correction from the June 1 high of $1,916.40. Three waves make up the correction. The third wave labelled c is unfolding.