Gold futures on the COMEX Division of the New York Mercantile Exchange declined from its record high on Thursday, as Venezuela offered to mediate a resolution to the crisis in Libya, which helped dampen safe-haven demands.

The most active gold contract for April delivery shed 21.3 dollars per ounce, or 1.5 percent, to settle at 1,416.4 dollars.

The Arab League said it's weighing an offer by Venezuelan President Hugo Chavez to mediate the civil conflict in Libya.

"Peace, if it happens, may be bearish for gold, as this could eroded some of the safe-haven demand that has pushed gold price all the way to the record," said a trader.

Gold price hit a record high on Wednesday, buoyed up by escalation of turmoil in the Middle East and continued hikes in crude oil price.

Besides, a Chicago gold analyst noted that traders were inclined to take profits as news and data stalled the upside momentum and creating an over-bought and top heavy atmosphere in the precious metals

Silver for May delivery also lost 50.8 cents, or 1.5 percent, to 34.327 dollars an ounce. Meanwhile, April platinum delivery also fell 26.3 dollars, or 1.4 percent, to 1,833 dollars an ounce.