Gold is trading lower today extending loses from the previous sessions after the FOMC statement. Yesterday the Federal Open Market Committee gave a confident outlook on higher inflation and lower unemployment which can be seen as indication that the FED will stick to its plan on hiking interest rates in 2015 for the first time since 2006. The bank will take "international developments" into account when deciding on the exact timing. All members of the FOMC unanimously backed the statement as solid economic growth fuels optimism despite a stronger dollar and declining oil prices.

Higher interest rates make gold less attractive as the metal is not yield-bearing. A stronger greenback also weighed on the dollar-denominated precious metal as it makes it more expensive for holders of other currencies.

The precious metal is currently quoted at USD1,275.80, -0,72% a troy ounce. On Thursday last week gold reached a five-month high at USD1,307.40.