Gold prices fell after the Federal Reserve signaled it™s on course for the first interest-rate increase since 2006, boosting the dollar and eroding demand for the metal as an alternative asset.

A rout in oil prices and the dollar™s rally against major currencies in the past six months crimped demand for gold. In 2014, the precious metal posted a consecutive annual decline for the first time since 1998 as gains in the U.S. economy signaled prospects for higher interest rates amid muted inflation.

Gold for immediate delivery fell 0.3 percent to $1,214.78 an ounce at 2:50 p.m. in New York, according to Bloomberg generic prices. The metal gained 3.1 percent in the previous three sessions because of European economic concerns.

On the Comex in New York, gold futures for February delivery fell 0.7 percent to settle at $1,210.70 an ounce at 1:37 p.m.,before the Fed announcement. Aggregate trading was 22 percent below the 100-day average for for this time, according to data compiled by Bloomberg.

Source: Bloomberg