Gold prices fell to a three-month low on Thursday as hints of further interest rate hikes by the U.S. Federal Reserve bolstered the dollar.
Spot gold fell 0.5% to $1,933.89 per ounce by 0235 GMT, hitting its lowest since March 17. U.S. gold futures dropped 1.2% to $1,945.70.
The Fed, in new economic projections, signalled that a stronger-than-expected economy and a slower decline in inflation will result in a likely rise in borrowing costs by another half-a-percentage point by the end of this year.
"Expectations of two more rate increases have weighed on gold and prices could see more selling pressure, with next support seen at the $1,920 level," said Brian Lan, of Singapore dealer GoldSilver Central.
"Fed has more or less given the market a direction" as prices were swaying in a certain range, he added.
The U.S. dollar index climbed, making bullion more expensive for those holding other currencies.
Traders are now pricing in a roughly 69% chance of Fed rate hike in July, according to the CME Fedwatch tool.
"We are also entering a seasonally slow period for physical demand, suggesting gold prices are more likely to drift lower in coming sessions barring a sharp slowdown in U.S. economic data which could spur interest in the gold market," Standard Chartered analyst Suki Cooper said.
Markets will now look ahead to a host of U.S. economic data expected later in the day, including the weekly jobless claims at 1230 GMT.
Focus also remains on the European Central Bank meeting, where it is expected to raise borrowing costs to their highest level in 22 years on Thursday and leave the door open to more hikes, extending its fight against high inflation even as the euro zone economy flags.
Spot silver fell 2.1% to $23.4285 per ounce, platinum dropped 0.8% to $967.61 while palladium lost 1.1% to $1,370.71.