The Newport rap act was due to appear at the Cardiff lesbian, gay, bisexual, and transgender festival on 25 August.
However, organisers said they were "deeply troubled at the thought that any members of our community might be left upset by one of our acts".
A spokesman for the band has been asked to comment.
In a statement, event organisers said: "Since announcing the act we have received feedback from the general public regarding the appropriateness of this booking - and want to listen to these concerns and act upon them."
The statement added organisers were "deeply troubled" an act might leave some attendees upset "during a time when they should be feeling most celebratory and proud".
They apologised for the "misjudgement" but when asked about specific reasons, a spokeswoman refused to elaborate further.
Goldie Lookin' Chain have had singles including their 2003 song Your Mother's Got a Penis.
The event takes place between 25 and 27 August.
More than 1,000 people took part in a parade at last year's event.
Goldie Lookin' Chain's appearance at Pride Cymru has been cancelled after concerns over their "appropriateness" for the event.