Gold at week-low as Federal Reserve's on hawkish overdrive

Gold prices dropped to a one-week low after the Federal Reserve announced its intention to raise interest rates until annual inflation reaches 2%, a move that is expected to put further pressure on the precious metal. Gold futures on New York's Comex fell by $27.50, or 1.4%, to $1939.60 per ounce. The spot price of gold reached $1,920.82, down $9.66, or 0.5%. The 10-year U.S. Treasury yield also hit a peak, and the Dollar Index reached six-month highs, limiting demand for dollar-denominated commodities among non-dollar currency holders. The hawkish stance of the Fed is seen as gold's primary challenge.