WASHINGTON (dpa-AFX) - Gold, generally seen as an inflationary edge, extended losses on Thursday after having fallen the most in two months the previous day amid Fed tapering talks.
Spot gold slipped 0.2 percent to $1,815.51 per ounce, while U.S. gold futures were down 0.8 percent at $1,815.05.
The dollar strengthened amid risk aversion and U.S. short-term government bond yields rocketed to their highest in 23-months following a hawkish statement from the U.S. Federal Reserve, signaling a rate hike quickly in the wake of high inflation and a strong labor market.
The Fed said that it would be appropriate to raise rates soon to contain a spike in inflation that is running well above its goal.
The central bank indicated that it would begin to shrink its balance sheet after starting to raise rates.
'With inflation well above 2 percent and a strong labor market, the Committee expects it will soon be appropriate to raise the target range for the federal funds rate,' the statement said.
Looking ahead, U.S. advance GDP data for the fourth quarter, weekly jobless claims for the week ended January 22, durable goods orders and pending home sales for December are due out in the New York session.
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