Precious-Gold rebounded slightly on Friday, yet set for its biggest weekly drop since September after the Fed hinted it may raise interest rate in the first half of next year.
Fed officials said they predict a hike in borrowing cost to at least 1 percent at the end of 2015, higher than previously expected.
The Fed decided after its two-day meeting this week to slash bond purchases by another $10 billion to $55 billion, showing seriousness that stimulus will be cut “in further measured steps at future meetings.”
The Fed’s hint to the possibility of ending the bond-buying programme this fall damped demand on the shiny metal as an inflation hedge.
On the other hand, the Fed statement gave a boost to the dollar, pushing it near three-week high.
So far, the yellow metal has lost more than 3 percent, falling from a six-month high, as investors’ attention shifted from Ukraine’s turmoil to the U.S. monetary decision.
Meanwhile, the yellow metal is trading around $1338.03 an ounce after hitting a high of $1340.37 and a low of $1327.74.
The U.S. dollar inched down against a basket of major currencies to hover around 80.28 after opening at 80.33, according to the dollar index.
Crude oil for May’s delivery rose to $99.02 a barrel from the session’s opening of $99.61.