Spot gold fell 1.5% to $1,722.98 an ounce at noon New York time. Earlier, the gold price slipped to $1,717.69 an ounce, its lowest over a seven-day period.

Gold futures for June delivery on the Comex also declined 1.7% to $1,722.60, which is lower than the spot price.

“Gold seems to have lost a little momentum since breaking above $1,750 and the rise in the dollar today doesn’t seem to be helping,” OANDA analyst Craig Erlam said in an interview with CNBC.

“However, the enormous amount of monetary stimulus in the system, the need for that to continue for some time and the inflation risk are all bullish for gold in the longer term,” Erlam added.

On Wednesday, minutes from the US Federal Reserve’s April meeting were released, which highlighted key risks emerging throughout the economy as lockdowns pushed forward. The Fed also acknowledged the possibility of further support measures if the economic downturn persists.

However, concurrent with concerns of a second wave of coronavirus outbreak later this year, policymakers noted there could a renewed downward pressure on inflation, which would not bode well for gold as it thrives during periods of inflation.

Meanwhile in other precious metals, palladium dropped 3.4% to $2,029.50 an ounce after reaching a one-month high earlier this week. Platinum dropped 1.8% to $830.25, while silver dipped 2.9% to $17.06.