Gold fell by the most in more than a month after the Federal Reserve upgraded its assessment of the U.S. economy and labor market.
The Federal Open Market Committee described the economic expansion as “solid,” after a meeting in Washington on Wednesday, an improvement over the “moderate” performance it saw in December. It substituted “strong” for “solid” in its evaluation of job gains. Higher rates curb gold’s appeal because the metal typically offers returns when prices rise.
“Positive sounds out of the Fed hurt,” Georgette Boele, an analyst at ABN Amro Bank NV, said by e-mail. “When precious metals get under pressure, it is often not a small move.”
Bullion for April delivery fell 1.2 percent to $1,272 an ounce at 9:11 a.m. on the Comex in New York. It fell as much as 1.8 percent earlier Thursday, the biggest drop since Dec. 22. Futures trading volume was 82 percent higher than the average for the past 100 days for this time of day, according to data compiled by Bloomberg.