Gold prices inch up in Asia as Fed holds pat as expected
On Thursday, gold prices gained during Asia trade, as the Fed held steady on interest rates as expected, although the outlook for a probable lift this year by the FOMC is still a subject to debate.
In New York, December delivery gold futures edged up 0.48%, trading at $1,337.75 per troy ounce.
Overnight, gold prices extended decent overnight profits during North America's trading session, climbing to a more than one-week peak.
The number one precious metal is very sensitive to moves in American interest rates. It raises the opportunity cost of holding non-yielding assets, including bullion, while spurring the greenback in which it’s priced. A gradual path to higher rates is considered to be a less threat to gold prices than a swift bunch of increases.
Earlier on Wednesday, the BOJ kept its interest rates intact at -0.1%, following its latest gathering and announced the willingness to modify its policy framework, thus marking the latest attempt to power inflation.