In the domestic markets, gold fell sharply amid a fall in the international market. Globally, the yellow metal hit a two-week low even after the interest rates have been lowered by the Federal Reserve. At the same time, the US central bank indicated that long and sustained easing regime cannot be expected.

Spot gold prices were down 0.2% at $1,410.42 per ounce, after falling to its lowest since July 17 at $1,405.50

On MCX, August gold futures fell 0.50% to ₹34,347 per 10 gram while October contracts declined 0.6% to ₹35,206. Nonetheless, 22K and 24 K gold trade almost unchanged at Rs. 34,060 and Rs. 35060 per 10 gm.

Another pressure point for the gold has been dollar which gained ground and jumped to a 2-month high against a basket of other emerging market currencies.

"Though the Fed cut the overnight Fed funds rate by 25bps as expected, the Fed statement and press conference were less dovish than what the markets had expected. One gets an impression the Fed is likely to be data dependent going forward," forex advisory firm IFA Global said in a note.

But it is to be noted that bullish sentiment for the metal continues as gold's buying and thus its price well be supported by a host of events in the global economy.

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