Gold futures settle nearly 3 percent lower on Fed-induced dollar rally
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Gold prices dropped nearly 3 percent Thursday to settle at their lowest level since early February.

The drop comes after the U.S. Federal Reserve announced that it would raise its key interest rate from 0.5 to 0.75.

The most active gold contract for February delivery fell 33.9 U.S. dollars, or 2.9 percent, to settle at 1,129 dollars and 80 cents per ounce.

Higher interest rates typically make the dollar stronger, which can put pressure on commodities that are pegged to the currency, such as gold.

In addition, non-interest-paying assets like gold lose their luster as interest rates increase.

Author： 　　　Source：CRI　　　 Editor：Yang Fan