CHICAGO, June 15 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange fell sharply on Thursday, as the U.S. dollar strengthened following the U.S. Federal Reserve's decision to raise its benchmark interest rate the previous day.
The most active gold contract for August delivery fell 21.3 U.S. dollars, or 1.67 percent, to settle at 1,254.60 dollars per ounce, which reached a three-week low.
As widely expected, the U.S. Federal Reserve on Wednesday raised the benchmark interest rate to 1 to 1.25 percents and unveiled plan to start trimming its balance sheet.
The rate hike, along with indication of further tightening, has built on a retreat of gold prices since Wednesday afternoon, while lifting the value of U.S. dollar.
The U.S. dollar Index went up by 0.57 percent to 97.50 as of 1743 GMT. The index is a measure of the dollar against a basket of other major currencies. When the dollar goes up, gold futures will fall.
As for other precious metals, Silver for July delivery dropped 42 cents, or 2.45 percent, to close at 16.716 dollars per ounce. Platinum for July delivery went down 30.6 dollars, or 3.21 percent, to close at 921.30 dollars per ounce.
