Gold fell on Wednesday, extending the session's losses after the U.S. Federal Reserve signaled it was taking a meeting-by-meeting approach on when to raise interest rates for the first time since 2006.
Following a two-day meeting, the Federal Reserve pointed to weakness in the U.S. labor market and economy, a sign it is struggling with plans to raise interest rates this year.
Spot gold fell to a session low of $1,201.13 after the Fed statement, and was last trading below $1,204. It had gained nearly 3 percent in the last two sessions, climbing to a three-week high of $1,215 on Tuesday.
U.S. gold futures for June delivery closed down $3.90 an ounce to $1,210 an ounce, after rising to their highest level since April 7 in the previous session.
"The market is reading that the Fed hasn't materially moved its liftoff time frame despite recent weakness in economic growth and employment,'' said Tai Wong, director of metals trading at BMO Capital Markets in New York.
"The market is reading that the Fed isn't over-emphasizing the winter slowdown and the poor March payrolls.''