Gold prices fell to a three-month low on Thursday, with the dollar surging after the US Federal Reserve hinted it would raise interest rates more this year.
And by 0440 GMT, spot gold fell 0.4 percent to $ 1935.09 an ounce, its lowest level since March 17. US gold futures fell 1.1 percent to $1,947.10.
The Fed noted in its new economic outlook that a stronger-than-expected economy and slower inflation will likely raise borrowing costs by another half percentage point by the end of the year.
Expectations of two more interest rate hikes weighed on gold and prices could see more selling pressure, said Brian Lan of GoldSilver Central in Singapore.
The dollar index rose, making the yellow metal more expensive for holders of other currencies.
Markets will now turn their attention to a batch of US economic data that will be released later in the day, including the weekly jobless claims.
Focus also remains on the European Central Bank's meeting, as it is expected to raise borrowing costs to a 22-year high on Thursday and leave the door open for further hikes, widening its fight against high inflation.
As for other precious metals, spot silver fell about 2 percent to $23.4654 an ounce, platinum fell 0.6 percent to $969.61, and palladium lost 1 percent, recording $1,371.44.
