Gold held near a two-week low after U.S. policy makers dropped a pledge to keep borrowing costs low for a œconsiderable time, moving the Federal Reserve closer to raising rates for the first time since 2006 as the dollar rose.

Bullion for immediate delivery traded at $1,189.78 an ounce at 8:21 a.m. in Singapore from $1,189.71 yesterday, when prices fell to $1,183.89, the lowest since Dec. 1, after the Feds change, according to Bloomberg generic pricing.  The metal is set to snap two weeks of gains as slumping energy prices threatened to push inflation further below the U.S. central banks 2 percent target.

Chair Janet Yellen said the Fed is unlikely to move before the end of April after policy makers replaced the considerable-time pledge with a promise to be œpatient. That sent the Bloomberg Dollar Index toward a five-year high and the Standard & Poors 500 Index up by the most since October 2013. Data yesterday showed that U.S. consumer prices rose 1.3 percent, the smallest gain since February with oil at five-year lows.

While the Feds statement made no reference to the Russian currency crisis or other global risks that have roiled financial markets, Yellen said the potential spillover from Russia on the U.S would be small. The ruble fell to a record this week even as the Russian central bank raised interest rates, spurring speculation that the country may sell some of its gold reserves.

Source : Bloomberg