Gold prices fell on Thursday, and pulled back from a 2-week high on profit-taking, and after the 10-year US Treasury bond yield jumped to a 14-month high, despite the Federal Reserve reassurances yesterday.

Gold prices fell 0.7% to $1,732.70 an ounce, after opening at $1,744.98, and hit a day high and the highest since March 1st at $1,719.58.

The yellow metal closed higher by 0.8% yesterday, as the US dollar fell after the Federal Reserve meeting.

The 10-year US bond yields rose by 5%, and hit a 14-months high of 1.744%, which weighs down on gold prices. 

This jump in the US bond yields comes despite the Federal Reserve's hints of not raising US interest rates before 2023.

The Federal Reserve decided today to hold the interest rate unchanged between 0.0% and 0.25%, and signaled that it will not be raised until 2024, while moving forward with the bond-buying program of $120 billion per month.

The central bank raised its GDP growth outlook to 6.5% in 2021, from 4.2% in the previous forecast, making it the largest annual jump in the US GDP since 1984.

The Fed projected that the inflation target would exceed 2% to 2.4% this year from 1.8%, and will fall to 2.1% and 2.0% in 2022 and 2023 respectively.

Gold stocks at the SPDR ETF fell 2.04 metric tonnes yesterday, with the total at the lowest level since April 22, 2020 at 1,048.28 metric tonnes.

Sterling fell in European trade against dollar after a hiatus from losses yesterday, with US treasury yields surging again to 14 month highs despite Fed reassurances. 

GBP/USD fell 0.2% to 1.3934, after closing up 0.5% yesterday, the first profit in four days away from week lows at 1.3808. 

The dollar index rose 0.3% on Thursday away from two-week lows hit earlier at 91.30. 

Dollar's gains came on haven demand as treasury yields rally again even after the Federal Reserve said it's not likely to raise rates until early 2024. 

10-year US treasury yields rose over 5% for the third straight session to 14-month highs at 1.744%.

Later today, Bank of England will issue its policy decisions and guidelines, with investors expecting no change in the 0.10% interest rate and the 895 billion pounds a month assets purchases program. 

The US dollar rose against most of its peers on Wednesday, amid anticipation of the Federal Reserve's decision later today.

The Federal Reserve will unveil the interest rate decision, which is widely expected to be kept at 0.25%, and Fed Chair Jerome Powell will hold a press conference.

Powell had stressed before that the US economy's recovery had moderated and employment slowed during the past few months, but expressed optimism about a return to recovery this year.

The dollar index rose against a basket of currencies by 0.1% to 91.9 points as of 17:43 GMT, after it hit a high of 92 points and a low of 91.8 points.

The Federal Reserve decided today to hold the interest rate unchanged between 0.0% and 0.25%, and signaled that it will not be raised until 2024.

The Fed also raised its expectations about the economic growth and the strength of the US labor market during the current and next two years, in tandem with rising inflation during 2021.

The central bank raised its GDP growth outlook to 6.5% in 2021, from 4.2% in the previous forecast.

The bank estimated the US economy to grow by 3.3% in 2022, but lowered its estimates for 2023 to 2.2% from 2.4%.

The Federal Reserve projected a drop in the US unemployment rate to 4.5% this year from 5%, and to drop to 3.9% and then to 3.5% in 2022 and 2023.

As for inflation, the bank raised its forecast for the personal spending index to 2.4% in 2021 from 1.8%, but it projected a drop in 2022 and 2023 to 2% and 2.1% respectively.