Gold slipped lower below the $2,000 price level amid stronger US dollar trade.
In the Asian session, the yellow metal was trading hovering around $1,995 per ounce, while gold futures were slightly higher at $2,008 per ounce.
The US dollar continued its recovery to rise further from its one-year lows against major rivals.
This was also followed by an increase in the 10-year US treasury yield which rose to around 3.60%.
The Empire State Manufacturing Index jumped sharply to 10.8 in March, compared to a contraction of 24.6 the previous month.
This indirectly shows that the United States economy is still growing beyond what the Fed expects.
The market now sees the probability of the Fed raising interest rates by 25 basis points to 5.00%-5.25% at the May meeting.
