Gold tumbled to its lowest in 8-1/2 months on Thursday as the dollar index jumped to a four-year peak after the Federal Reserve signalled that a faster hike in US interest rates might be on the horizon. Spot gold fell to $1,216.01 an ounce early on Thursday, its lowest since January 2, before paring losses to trade flat at $1,224 by 0624 GMT. The metal lost nearly 1 percent the day before. US gold futures slid 1 percent to $1,224.70.
"Technically gold looks vulnerable, with the psychological $1,200 and the critical $1,180 now a real possibility of being tested in the coming days or weeks," said MKS Group dealer Jason Cerisola.