Investing.com - Gold prices tumbled to a more than three-week low on Thursday, in the aftermath of the Federal Reserve ending its monthly bond-buying program.
On the Comex division of the New York Mercantile Exchange, gold futures for December delivery fell to a session low of $1,203.30 a troy ounce, the weakest level since October 6.
Prices recovered to last trade at $1,203.30 during European morning hours, down $21.60, or 1.76%.
Futures were likely to find support at $1,183.30, the low from October 6, and resistance at $1,230.40, the high from October 29.
Also on the Comex, silver futures for December delivery plunged 42.7 cents, or 2.47%, to trade at $16.83 a troy ounce.
The Federal Reserve ended its large-scale asset purchase program, known as quantitative easing, at the conclusion of its two-day policy meeting on Wednesday, in a widely expected decision.
The Fed retained its commitment to keep interest rates near zero levels for a “considerable time" and sounded more hawkish on the labor market, saying that “underutilization of labor resources is gradually diminishing.”
The US dollar index, which tracks the performance of the greenback against a basket of six major rivals, rose to a three-and-a-half-week high of 86.49.
A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
Elsewhere in metals trading, copper for December delivery sank 3.1 cents, or 1%, to trade at $3.074 a pound.
Later in the day, the U.S. was to publish preliminary data on third quarter GDP, as well as the weekly report on initial jobless claims. In addition, Fed Chair Janet Yellen was to speak at an event in Washington.