Gold futures on the COMEX Division of the New York Mercantile Exchange ended sharply lower on Wednesday, as traders took profits on previous gains.

The most active gold contract for December delivery dropped 34. 4 dollars, or 2.1 percent, to 1,618.1 dollars per ounce.

Gold snapped a four-day losing streak on Tuesday, settling 3.6 percent higher as hopes for a resolution to the European debt crisis reduced the rush to cash and thus taking the pressure off the precious metals.

A market analyst said that many traders chose to book some profits and wait on the sidelines after the rebound seen in the previous session, as gold suffered a good deal of reputational damage with recent wild moves.

The Gold market tanked late session as investors continue to be concerned over the fragility in Greece, said Mike Daly, a gold specialist with PFGbest here in Chicago.

"Until Greece gets its next aid, investor confidence in the euro Region will continue to pressure the precious metals market. As it appears the situation in Greece changes from minute to minute," Daly added.

Silver for December delivery retreated 1.402 dollars, or 4.4 percent, to 30.134 dollars per ounce.