Gold prices are falling amid dollar strengthening after the Fed raised interest rates.
Gold is traded at $ 1067.20 per ounce compared to US $ 1072.56 at the close of Wednesday trading, and US futures fell $ 10.30 to $ 1066.50 an ounce.
Since the beginning of the year, gold has fallen in price by 10 %, reaching a six-year low in December.
The US Federal Reserve on Wednesday raised interest rates for the first time in almost a decade, making it clear that the US economy has largely overcome the financial crisis of 2007-2009.
"This morning, the main theme is the dollar. The market had expected the Fed comments" - said a trader of precious metals in Hong Kong.
The Central Bank made it clear that rate hikes will be gradual, but Fed officials forecasts are a bit higher than many analysts expected. Officials predict a rise in interest rates by 100 basis points over the next year, to 3.5 %. The divergence in forecasts of the Federal Reserve and investors may damage the gold market.
Silver is traded at $ 14.09 per ounce compared to $ 14.17 at the closing of Wednesday trading, platinum is $ 863.20 compared to $ 873.10, and palladium is $ 557.90 versus $ 568.45.
On Thursday, the copper prices fell to a three-week low on the first Fed rate hike in nearly a decade, which has strengthened the dollar and undermined demand for raw materials.
During early London trading, on Comex division of the New York Mercantile Exchange, copper futures for March delivery fell 2.5 cents, or 1.22%, to get traded at $ 2.046 per pound. Earlier, the price dropped to $ 2.037, the lowest level since December 3. Meanwhile, on London Stock Exchange, three-month copper contract fell 1.1% to $ 4556.00 per ton.
The hike of interest on loans had a negative impact on the precious metal because it cannot compete with the profitable assets in a period of growing rate.