Gold futures settled lower Wednesday, then fell further after minutes from the U.S. Federal Reserve’s April meeting showed that officials from the central bank were ready to raise interest rates in June if economic data warrant.

June gold US:GCM6 settled at $1,274.40 an ounce, down $2.50, or 0.2%, from Tuesday’s finish. In electronic trading after the FOMC minutes, prices fell to lows under $1,265 an ounce.

“Most participants judged that if incoming data were consistent with economic growth picking up in the second quarter…then it likely would be appropriate for the Committee to increase the target range for the federal funds rate in June,” the minutes read.

On Tuesday, two Fed officials also left the door open to a June rate increase.

Read:Fed officials Williams, Lockhart stress that June meeting is ‘live’

“The FOMC minutes reflected a more-hawkish tone than the post-meeting policy statement had indicated,” Brien Lundin, editor of Gold Newsletter told MarketWatch. “The odds still remain long that economic data will support a rate hike at the June meeting, or that the Fed will choose to hike just days in advance of the Brexit vote.”

Higher interest rates can boost the dollar and dull demand for dollar-denominated commodities. The ICE U.S. Dollar Index DXY, +0.03% , which tracks the buck against a basket of currencies, was up 0.5%.

“Gold took the information bearishly, and some sell-stops have been hit to exacerbate the selling,” Lundin said. “It will be crucial to see how gold responds to this sell-off over the next couple of trading sessions, as the commercial shorts will jump on the opportunity to pressure gold further downward.”

Still, gold may find some safe-haven support as U.S. stocks traded mostly lower in the wake of the minutes. See Market Snapshot.

Year to date, gold still boasts and impressive gain of roughly 20%.

Lundin pointed out that there is a “massive net short position by the large commercial category of paper gold traders on the CME” and that’s weighing heavily on gold.

“I would gauge that there’s about a 70% chance that this short position will lead to a significant correction in the price at some point over the next month or so,” he said. “However, if some event or economic data point sparks a spike in gold and forces these commercials to cover their shorts, we could see a major rally emerge.”

Elsewhere on Comex, silver for July delivery US:SIN6 slipped 11.8 cents, or 0.7%, to settle at $17.132 an ounce after logging its best settlement in over a week a day earlier.

July copper US:HGN6 ended at $2.079 a pound, down 1.1 cents, or 0.5%. July platinum US:PLN6 lost $12, or 1.1%, to $1,042.50 an ounce, while June palladium US:PAM6 lost $5, or 0.9%, to $579.60 an ounce.