09:49 AM EST, 12/19/2024 (MT Newswires) -- Gold dropped for a sixth-straight session, falling to five-week low after the Federal Reserve indicated it expects to slow the pace of interest-rate cuts in the new year, sending the dollar to a two-year high.

Gold for February delivery was last seen down US$43.10 to US$2,610, the lowest since Nov.15.

The Federal Reserve on Wednesday met expectations as it cut interest rates by 25 basis points. However the central bank's Federal Open Market Committee indicated it expects to cut rates only an additional 50 points in 2025.

The dollar surged to the highest since November 2022 following the committee's meeting and continued to rise early on Thursday, with the ICE dollar index last seen up 0.07 points to 108.1. A higher dollar is bearish for commodities that are priced in the currency.

Treasury yields were mixed, with the U.S. two-year note last seen paying 4.327%, down 3.6 basis points, while the yield on the 10-year note was up 3.7 points to 4.556%.