Gold prices fell to their lowest level in a week on Thursday as the dollar and equities rallied after the US midterm election results were announced as investors focused on the Federal Reserve's monetary policy decision scheduled for Thursday.
The Fed is unlikely to raise interest rates until its next meeting in December, but traders are waiting to see if it will provide evidence of possible increases in December and 2019.
"The December interest rate increase is fully absorbed, but the outlook for next year is still uncertain," said Elia Spivak, exchange analyst at DailyFX.
"The confident tone will likely press gold, but the cautious may give some support," Spivak was quoted as saying by Reuters.
The Fed raised interest rates in September, and plans another four increases by the end of 2019, and one in 2020 in light of what he says is steady economic growth and a strong job market.
The US interest rate hike strengthens the dollar, raises bond yields, and lures the lure of non-yielding gold.
At 7:10 GMT, the spot price of gold was down 0.3 percent at $ 1222.31 an ounce, after hitting its lowest since November 1 at $ 1221.1 earlier in the session.
US gold futures fell 0.2 percent to $ 1226.3 an ounce.
