Investing.com - Gold prices fell smartly in Asia as the Federal Reserve said it may need to hike rates three times in 2017 as it made a widely expected nudge up in its policy rate on Wednesday.
Gold futures on the Comex division of the New York Mercantile Exchange dropped 1.66% to $1,144.35 a troy ounce, while silver futures plunged 2.26% to $16.832 a troy ounce. Copper futures bucked the downward slope, up 0.46% to $2.612 a pound.
Overnight, gold prices fell on the Federal Reserve interest rate hike and provided guidance of as many as three increases next year, with investors focused on plans by President-elect Donald Trump to cut taxes and spend heavily on infrastructure.
Like other federal agencies, Fed Chair Janet Yellen confirmed the Federal Reserve has been in touch with President-elect Trump's transition team, but would not be drawn into direct comment on the monetary policy impact, or on the status of regulations aimed at avoiding a repeat of the Global Financial Crisis.
“I feel that we lived through a devastating financial crisis that took a huge toll on our economy and most members of Congress and the public came away from that experience thinking it was important to take a set of steps that would result in a safer and stronger financial system," Yellen concluded.