Gold Drops as Dollar Rises Following U.S. Rate Cut

Gold prices continued to decline on Thursday due to the strengthening of the dollar. This followed the Federal Reserve's decision to cut interest rates by a quarter percentage point, as anticipated, and hinted at further monetary easing.

By 0119 GMT, spot gold fell 0.2 percent to $3653.54 per ounce, following a record high of $3707.40 on Wednesday.

U.S. gold futures for December delivery dropped 0.8 percent to $3688.10. Meanwhile, the dollar rose 0.2 percent, maintaining its gains against other currencies, making gold more expensive for holders of different currencies.

The U.S. central bank cut interest rates by 25 basis points on Wednesday and indicated a steady reduction in borrowing costs for the rest of the year.

Among other precious metals, silver fell 0.3 percent in spot transactions to $41.55 per ounce. Platinum increased by 0.3 percent to $1367.60, and palladium climbed 0.4 percent to $1158.94.