(Bloomberg) -- Gold declined as traders assessed the Federal Reserve’s indication that it will likely keep rates on hold for longer than originally planned.

Bullion had remained steady early Wednesday before falling as much as 0.9% in the afternoon. The intraday turnaround isn’t uncommon for the precious metal as daily trading activity has become volatile with prices hitting a series of new peaks in recent weeks.

The precious metal is up about 15% so far this year, with gains partly driven by haven demand as geopolitical tensions in the Middle East and Ukraine continue to escalate. Long-standing supports — including robust buying by central banks and increased demand from Chinese consumers — are also underpinning prices.

Deutsche Bank raised its gold price forecast to an average of $2,400 an ounce for the fourth quarter of 2024 and to $2,600 for fourth quarter of 2025, citing a durable impact from recent investment inflow. Its strategist Michael Hsueh sees tension in the South China Sea as a potential flashpoint that could garner greater attention for gold.

Spot gold fell 0.5% to $2,370 an ounce as of 1:02 p.m. in New York, still close to its all-time high of $2,431.52 reached on Friday. The Bloomberg Dollar Spot Index dropped 0.2%. Silver and palladium rose, while platinum fell.

--With assistance from Sybilla Gross and Jack Ryan.

©2024 Bloomberg L.P.