Gold fell on Thursday as investors booked profits after the metal hit a two-week high earlier in the session on increased expectations of a dovish monetary policy stance from the U.S. Federal Reserve.

Spot gold slipped by 0.4% to $1,421.06 an ounce by 10:09 GMT. Prices had jumped about 1.5% in the previous session and extended gains early on Thursday to hit $1,426.80, gold's highest since July 3.

Bullion had firmed on Wednesday after the Fed reported that the U.S. economy has continued to grow at a “modest” rate in recent weeks.

Among other precious metals, silver rose 0.6% to $16.07, exceeding the $16 mark for the first time since February. Spot platinum was up 1% at $851.58 while palladium dipped 0.6% to $1,529.08.

Source : Reuters