Gold fell to nearly four weeks lower due to the Fed hinted that it would raise i

Gold fell about 1% on Thursday, touching nearly four weeks low, not further weakened by the dollar, before the US Federal Reserve Board (FED / Fed) hinted that may raise interest rates in December.

Gold is very sensitive to the US rate hike, because the rate hike is relative to other assets, boosting the opportunity cost of holding interestless gold while boosting the dollar while gold is denominated in dollars.

1925 GMT, spot gold fell 0.7 percent at $ 1,291.46 an ounce, earning $ 1,287.61 since August 25. US December futures closed at $ 1,294.80 an ounce.

"Today's continuation of yesterday's trend, I think, people think that the Fed's policy tone enough hawks," BankSalth Bank's senior investment strategist Rob Haworth said.

"If you start from now on, health insurance legislation, tax policy and work back to the United States to achieve one by one, which means that economic growth will accelerate, which is detrimental to gold, so investors may think that is now locked to profit Good time, because the market digested the December rate hike.

The Federal Reserve said in a statement issued Wednesday after a two-day meeting that despite the recent weakness in inflation, it is expected to raise interest rates again by the end of the year.

The Fed also said it plans to cut its $ 4.2 trillion bond portfolio.