Gold fell around one percent as U.S. Federal Reserve announced yesterday a further cut in its stimulus programme and reiterated its confidence in the U.S. economic outlook despite weak first-quarter growth.

Outflows resumed from bullion-backed exchange-traded funds, suggesting investor confidence in the metal remains soft. Holdings in the SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 4.19 tonnes to 787.95 tonnes on Wednesday - its biggest outflow since April 16 and the first change in its holdings since April 21.

Currently gold was down 0.93% at $1,282.00 an ounce. Session low was established at $1,277. an ounce