Gold consolidates gains after Federal Reserve meeting

Gold prices rose marginally today, to extend gains for the fourth straight day, on the US dollar drop against a basket of currencies, and after the US Fed decision to hold the rates unchanged. 

Gold prices rose by 0.1% to $1,475.75, after opening at $1,474.54, and hit a session-low of $1,472.07.

The yellow metal gained 0.75% yesterday, to post its third straight daily gain buoyed by the US dollar's drop against a basket of currencies.

The US dollar index fell by 0.1% on Thursday, to deepen its losses for fourth straight day, as sell-off continued on the US currency against a basket of major currencies.

The US Federal Reserve decided yesterday in a widely expected move to hold interest rates unchanged between 1.75% and 1.50%, and hinted a pause in 2020.

The US central bank stated that the monetary policy will not change indefinitely, amid forecasts for continued moderate economic growth until the presidential elections scheduled for November 2020.

Federal Reserve Chairman, Jerome Powell, said the US economic outlook was positive, which is why the Fed decided to hold interest rates, and stated that necessary measures will be taken when necessary.

The Fed forecast a moderate US economic growth during 2020, a contraction during 2021, and 13 out of 17 members of the FOMC expect no change in interest rates until 2021.

Gold holdings at the SPDR Gold Trust, rose yesterday by 0.29 metric tonnes, to a total of 886.22 mt.