Gold fell to $1,126.80 (-0.43%) after the Swiss competition commission said they were suspecting seven large banks (UBS, Julius Baer, Deutsche Bank, HSBC, Barclays, Morgan Stanley and Mitsui) for price manipulation in the trade of precious metals. However analysts say that this probe is unlikely to influence gold trading significantly.

Bullion was also weighed by speech by FOMC Member Dudley, who said that the central bank is likely to raise rates later this year. Higher interest rates would decrease demand for non-yielding bullion.