Gold hits one-week high as Fed signals only gradual rate hikes
Gold prices rose to a one-week high on Thursday as the dollar fell after the US Federal Reserve stuck to a less hawkish stance on further interest rate hikes this year.
Spot gold rose 0.3 per cent to $1,222.20 per ounce, the highest since March 7, at 0028 GMT. US gold futures climbed 1.72 per cent to $1,221.3.
Holdings of SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, rose 0.53 per cent to 839.43 tonnes on Wednesday from 834.99 tonnes on Tuesday.
The US Federal Reserve raised interest rates on Wednesday for the second time in three months, a move spurred by steady economic growth, strong job gains and confidence that inflation is rising to the central bank's target.
However, the central bank said in its policy statement that further hikes would only be "gradual," with officials sticking to their outlook for two more rate hikes this year and three more in 2018.
The dollar wallowed at a one-month low early on Thursday after the Fed sounded less hawkish, while the euro stood tall as Dutch election exit polls gave the country's prime minister a big lead over his far-right rival.
The dollar index against a basket of major currencies extended losses from the previous day, when it slid more than 1 per cent, to touch 100.490 , its lowest since Feb. 17.
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