Gold extended losses as investors weighed the outlook for higher U.S. interest rates after the Federal Reserve boosted its assessment of the economy and labor market, while acknowledging global risks.
Bullion for immediate delivery fell as much as 0.5 percent to $1,278.27 an ounce and was at $1,279.91 by 10:23 a.m. Singapore time, according to Bloomberg generic pricing. Prices dropped 0.6 percent on Wednesday. Gold for April delivery lost 0.5 percent to $1,280.30 an ounce on the Comex.
The Federal Open Market Committee after a meeting in Washington on Wednesday described the economic expansion as “solid,” an improvement over the “moderate” performance it saw in December. It substituted “strong” for “solid” in its evaluation of job gains and said it will take into account readings on international developments as it decides how long to keep key rates near zero.