The precious metal dropped to the lowest level in five weeks on Thursday. Gold’s latest leg down followed the release of better-than-expected U.S. private jobs data midweek. The precious metal has been thrown onto the defensive after Federal Reserve officials talked up the chances of tightening, boosting the odds of an imminent hike.
Investors' on Thursday would remain focus on the monetary policy meeting, which might trigger some volatility in the markets. “Three weeks ago the possibility of a rate hike in March was very small, but now it’s 100 percent,” said Bob Takai, chief executive officer of Sumitomo Corp. Buyers would continue to maintain cautious stance ahead of Friday's key data and the meeting next week.