SINGAPORE: US gold fell 2 percent on Wednesday to its lowest in nearly two months, tracking losses in cash gold prices as the dollar rallied after the US Federal Reserve meeting offered no new stimulus.
The dollar index rose to an 11-month high, supported by reduced expectations of imminent monetary easing following the Federal Reserve's less pessimistic assessment of the US economy.
The most-active US gold futures contract tumbled as much as 2.3 percent to $1,625.3 an ounce, before recovering to $1,633.60 by 0018 GMT.
Spot gold was little changed at $1,629.79, after sliding 2 percent in the previous session.
The US gold contract settled at $1,663.10 on Tuesday, more than $30 higher than the closing price of spot gold.
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