Gold futures dropped on Thursday to settle at their lowest level in about three weeks as signs the Federal Reserve could raise interest rates in June dampened demand for the yellow metal.

June gold US:GCM6 fell $19.60, or 1.5%, to settle at $1,254.80 an ounce. Prices haven’t settled at a level this low since April 27. July silver US:SIN6 dropped 63.9 cents, or 3.7%, to $16.493 an ounce—ending the session at its lowest since April 18.

Thursday’s decline follows a slide by gold in electronic trading late Wednesday spurred by minutes from Federal Reserve’s April meeting that showed the central bank is seriously considering hiking interest rates in June.

The Fed minutes “strongly suggested the central bank is warming to the idea of a rate increase come June, especially…if the economic data continues to improve and if inflation moves towards the Fed’s 2% target,” Edward Meir, independent commodity consultant at INTL FCStone, said in a note.

Read:Fed’s Dudley points to interest rate hike in June or July

Rate hikes can weigh on gold as the precious metal doesn’t pay interest. Moreover, the dollar DXY, +0.03% has strengthened after the minutes, hurting dollar-denominated commodities such as gold by making them more expensive to buyers using other monetary units.

Looking ahead, Meir expects to see further declines in the commodity complex “over the balance of May and heating into June.”

“Just as the prospect of extended low rates and a weaker dollar provided commodities with considerable tailwinds earlier in the year, the reverse could be at work now, as rising rates and a stronger dollar pressures prices lower,” Meir said. “Gold will likely be a front-casualty in such a retreat.”

Still, some analysts were upbeat on gold’s outlook.

Adam Koos, president of Libertas Wealth Management Group, said he’s be shocked to see a rate-hike in June.

“ Stock bulls are ‘losing their religion to the church of gold.’ ” — Adam Koos, Libertas Wealth Management

“There is too much risk in the equity marketplace,” he said. Stock bulls are “losing their religion to the church of gold.”

“If I weren’t already long gold, I’d be buying on this dip as I don’t see it falling much lower than $1,115, even in light of the Fed’s hawkish comments,” Koos said.

Michael Armbruster, principal and co-founder at Altavest, said it’s important not to be concerned with short-term movements.

“Beyond interest rates, currencies around the world are being devalued via central bank policy. China’s currency is still overvalued and likely to weaken further,” he said. “So, the picture really doesn’t change for gold unless the Fed hikes rates more than 100 basis points from here.”

Other metals traded on Comex settled solidly lower. July copper US:HGN6 edged down by 1.8 cents, or 0.8%, to $2.061 a pound. July platinum US:PLN6 lost $29.20, or 2.8%, to $1,013.30 an ounce and June palladium US:PAM6 plunged $21.15, or 3.7%, to $558.45 an ounce.