New Zealand shares fell on Wednesday as global shares fell after gold retreated sharply from its recent surge, as investors took profits and questioned stretched valuations.

The S&P/NZX 50 Index fell 0.5% or 71.41 points to close at 13,306.44.

The sharp overnight drop in gold dominated market attention after the metal tumbled more than 5% on Tuesday with no clear trigger.

"Gold was massively stretched, massively overbought. There's been a lot of FOMO (fear of missing out) going into that market," said Tony Sycamore, a market analyst at IG, as quoted by Reuters.

In domestic news, a total of 40,621 metric tonnes (MT) of products were sold during the Global Dairy Trade (GDT) auction held Tuesday, with supply ranging from 37,070 to 45,086 MT, according to data from the trading platform.

In corporate news, Fonterra Co-operative Group (NZE:FCG) is investing NZ$75 million to expand its Clandeboye site in South Canterbury, adding a new butter production line that will boost capacity by up to 50,000 metric tonnes annually. The company's shares closed down marginally.

Henderson Far East Income (NZE:HFL) declared its fourth interim dividend of 0.0625 pound sterling per ordinary share for the year ended Aug. 31. Its shares were modestly higher at market close.