Gold dives below $1,800 on Fed's projections

Gold prices fell on Thursday, deepening losses losses for the fifth day, falling below the $1,800 barrier for the first time in 6 weeks, as the US dollar rallied against its peers after the US Federal Reserve hinted earlier policy tightening as inflation and growth improve. 

Gold prices fell 0.3% to the lowest since May 6 at $1,795.12 an ounce, after opening at $1,811.59, and a high at $1,825.22.

Gold lost 2.6% yesterday, and posted its fourth straight daily loss, and the largest since January 8, following the Federal Reserve's meeting.

The dollar index rose 0.4% on Thursday for the third straight session, marking a 2-month high at 91.75 as the greenback extends lead against a majority of rivals. 

The Fed was more bullish than expected before with its timeline for raising interest rates and forecasts for inflation and growth. 

The Fed expects gradual and solid recovery from Covid 19 pandemic this year, with goals proceeding towards inflation and employment marks faster than expected. 

June forecasts point to a 0.6% interest rate in 2023, meaning two rate hikes in 2023, with 13 members now expecting hikes in 2023 compared to 7 before. 

The Fed also raised inflation forecasts to 3.4% in 2021 from 2.4% in March, and raised growth forecasts to 7% this year from 6.5% in March.

Gold stocks at the SPDR ETF rose by 1.17 metric tonnes yesterday, with the total at the highest level since June 1st at 1,045.78 metric tonnes.