The Asian market session saw the yellow metal trade little changed amid the Federal Reserve's (Fed) hawkish stance following its latest policy meeting.
At the time of writing, gold continued to hover around a 2-and-a-half-year low at $1,672 an ounce, with gold futures trading at $1,680 an ounce.
The Fed's decision to raise interest rates by 75 basis points has pushed the strengthening of the US dollar to a new 20-year high and US bond yields higher.
This in turn dragged gold trading lower amid expectations the Fed will extend rate hikes with signals it won't come down until 2024 to fight inflation.
Although gold is considered an inflation hedge by investors, the yellow metal tends to decline following interest rate hikes by the central bank.
Gold has also lost its luster as a store of value as economic uncertainty following the relative strength of the United States economy and the Fed's aggressive stance on inflation boosted the USD at the expense of other safe-haven assets.
In addition, other central banks such as the Bank of England (BOE) and the Swiss National Bank (SNB) have also raised interest rates this week.
