The Federal Reserve (Fed) sent gold trading lower after raising interest rates by 75 basis points and signaling more hikes are on the way.
In the Asian session, gold slipped 1% pushing prices to a new 2-1/2-year low at $1,656 an ounce. Gold futures traded at $1,667 per ounce.
The yellow metal initially recorded a surge following Russian President Vladimir Putin's announcement that he was deploying his reserve forces to Ukraine.
This in turn has triggered risks in the market which has led to an increase in safe-havens including gold precious metals.
But after the Fed's decision was announced, gold traded lower again as the US dollar surged to its latest 20-year high.
Chairman Jerome Powell continues to reaffirm his commitment to continue raising interest rates in an effort to lower inflation back to the central bank's target of 2%.
With no cuts expected until 2024, it gives an indication that interest rates will remain high for much longer.
