Gold prices decline as U.S. Federal Reserve signals further rate hikes

Gold prices swung lower and headed for their third straight daily decline after the Federal Reserve signaled that another interest rate increase is likely later this year.

Bullion dropped as much as 1.3% as Fed Chair Kevin Warsh reaffirmed the central bank's focus on containing persistent inflation following the first rate hike in three years.

The stronger U.S. dollar and higher real yields resulting from the hawkish policy stance weighed heavily on bullion, which has fallen about 4% in September.