Gold prices dropped on Thursday as the dollar rallied against most major currencies following the release of economic data.
Earlier U.S. data showed producer prices decreased by 0.2% month-over-month in May, contrary to analysts' expectations of a 0.1% increase.
U.S. unemployment claims rose by 13,000 to 242,000 last week, while analysts had anticipated a drop to 225,000.
The Federal Reserve decided to keep interest rates unchanged between 5.25% and 5.5% at the June 11-12 meeting, maintaining them at 23-year highs.
According to the Fed’s policy statement, the Federal Open Market Committee believes the risks to achieving better employment and inflation goals are becoming more balanced, but the economic outlook remains uncertain.
Notably, the Fed now anticipates a single interest rate cut this year, as opposed to the three cuts suggested in the March meeting statement.
Federal Reserve Chair Jerome Powell noted that the U.S. economy has made some progress in bringing inflation towards the 2% target and increasing job opportunities.
Meanwhile, the dollar index rose 0.5% to 105.1 as of 19:46 GMT, reaching a session high of 105.2 and a low of 104.6.
On trading, gold spot prices fell 1.5% as of 19:47 GMT, or $35.8 to $2319 an ounce.