SAN FRANCISCO (MarketWatch) — Gold posted its biggest daily percentage drop in 13 months on Thursday as U.S. jobless claims fell sharply, bolstering the Federal Reserve’s commitment to tightening monetary policy later in the year.

Gold for February delivery US:GCG5 skidded $31.30, or 2.4%, to settle at $1,254.60 an ounce, while March silver futures US:SIH5 shed $1.32, or 7.3%, to $16.77 an ounce.

Government data showed the number of U.S. workers making first-time claims for unemployment benefits fell to 265,000 in the week ended Jan. 24 from a revised 308,000 a week earlier. The fall was much larger than economists had expected and took initial claims to the lowest level since 2000. Economists had warned that the figures could be impacted by a reporting week shortened by the Martin Luther King Day holiday.

A recovery in U.S. stocks and the greenback also tarnished gold’s allure as a safe-haven asset.

Gold prices had come under pressure a day earlier after the U.S. central bank continued to imply a commitment to raising interest rates around the middle of 2015.

The Federal Reserve remained upbeat about the economy, noting “solid” growth and “strong job gains.” The central bank officials reiterated that the Federal Reserve can be “patient” in tightening the monetary policy, according to the statement.

Also read about data coming Friday: Employment cost index may mean more to markets than GDP report

In other metals, platinum for April delivery US:PLJ5 tumbled $41.20, or 3.3%, to $1,217.30 an ounce, while palladium for March delivery US:PAH5 lost $24.70 to $771.60 an ounce. High-grade copper for March delivery US:HGH5 fell 3 cents, or 1.1%, to $2.45 a pound.