Gold prices slumped, extending a six-month low, as upbeat global stock markets lowered demand for the safe-haven metal, while platinum slumped to a three-week low as the dust settled on the latest disruption to supply.
Ahead of the New York day, spot gold was down 0.6% from Tuesday's settlement price at $1,594.80 a troy ounce. Silver was down 0.5% at $29.303/oz.
In the futures markets, gold for February delivery was down $15.50, or 1%, to $1,588.10, putting it on track for its fifth consecutive loss, while the most actively traded contract, for April delivery, was off 0.9%, or $13.80, at $1,590.40.
The February contract had lost 2.7% in the four sessions through Tuesday, to settle at its lowest level since Aug. 14.
"Equity markets remain strong and are arguably reducing the attraction of buying gold," said INTL FCStone analyst Ed Meir.
"Several funds [recently] pared down their long-side exposure considerably and we suspect that this retrenchment is more than offsetting the pickup we are seeing in physical demand," he said, adding that central-banks were not "stepping in to pick up additional units at the moment."
The market's attention Wednesday will focus on the U.S. Federal Open Market Committee's January policy meeting minutes, due later in the day. Investors will be looking for clues as to the longevity of the current U.S. easy-money programs, which benefit gold in its capacity as a hedge against liquidity-fuelled inflation and currency weakness.
Earlier in the week, physical buying in Asia as China returned from the Lunar New Year holiday had propped up bullion prices, but negative pressures outweighed this support Wednesday.
Platinum extended recent losses as miners at Anglo American Platinum AMS.JO +0.22% in South Africa, who downed tools Tuesday amid a resurgence of union clashes, returned to work.
Platinum had managed a brief move upwards Monday and early Tuesday after a violent clash injured 13 people and mining operations were affected by a subsequent strike. But with speculative interest in the metal over-extended and Amplats, the world's largest producer, still in negotiation with the South African government and unions over planned mine closures, platinum prices have struggled.
"The price impact [has been] limited since most of [the supply disruptions] had already been priced in following January's announcements of capacity shutdowns that saw a prolonged rally in platinum," noted VTB Capital analyst Andrey Kryuchenkov.
"Platinum is still vulnerable to a correction here should longs take profits [if] macro sentiment sinks," he said, adding that a Wednesday platinum close below $1,680/oz would see the market supported at $1,650/oz.
Spot platinum was down 1.1% on Tuesday's price at $1,671.25/oz and palladium was 0.4% lower at $758.40/oz.
