LONDON: Gold dipped below $1,200 an ounce on Thursday and silver plunged 4 percent to its lowest since March 2010, a day after the US Federal Reserve gave upbeat comments about economic growth and ended its year-long bond-buying stimulus program.

Spot gold fell as low as $1,195.70 an ounce, which marked a three-week low. It was last down 1.2 percent to $1,197.40 an ounce by 11:25 p.m. (1525 GMT).

US COMEX December gold futures were down $27.90 at $1,197.

US interest rate futures shifted to show better-than-even chances of a rate rise next September. Previously, they had indicated a rise in October.

That dented interest in gold, which as a non-yielding asset tends to benefit from ultra-low rates.

Silver was down 4.1 percent at $16.35 an ounce, having earlier hit its lowest since March 2010 at $16.30.

COMEX options floor trader Jonathan Jossen said investors sold silver on heavy losses in copper and technical selling after it broke below key support near $16.80, near its recent low from earlier this month.

Spot platinum fell 1.5 percent to $1,235.25 an ounce, while spot palladium dropped 1.9 percent to $774.75 an ounce.

The US central bank largely dismissed financial market volatility, a slowdown in Europe and a weak inflation outlook as factors that might limit progress toward its unemployment and inflation goals.

Commerce Department data showed a smaller trade deficit and a surge in defense spending buoyed US growth in the third quarter, though other details of Thursday’s report hinted at some loss of momentum.