Gold futures on the COMEX division of the New York Mercantile Exchange fell further on Thursday after the U.S. Federal Reserve hinted they would go on with gradual rate hikes later this year.
The most active gold contract for December delivery went down 7.50 dollars, or 0.61 percent, to close at 1220.10 dollars per ounce, the lowest level since mid-July 2017.
Boosted by the Fed's statement on Wednesday that recent strong economic data support gradual rate hikes, the U.S. dollar index, a gauge of the greenback against a basket of key foreign currencies, rose 0.50 percent to 94.90 as 1752 GMT.
Although Fed left the key interest rate unchanged this month, expectations for further hikes later this year led to s stronger dollar.
Gold and the dollar typically move in opposite directions. When the dollar goes up, gold futures will fall as gold, priced in the dollar, becomes more expensive for investors using other currencies.
As for other precious metals, silver for September delivery went down 6.7 cents, or 0.43 percent, to close at 15.385 dollars per ounce. Platinum for October rose 11.00 dollars, or 1.35 percent, to settle at 828.20 dollars per ounce.