Gold hit a more than one-week high on Thursday as the dollar weakened after the US Federal Reserve kept interest rates unchanged at its first meeting since President Donald Trump took office. Spot gold was up 0.6 percent at $1,216 per ounce as of 0601 GMT after rising to a high of $1,217.17, its highest since January 24, while US gold futures were 0.8 percent higher at $1,218.10.
The dollar index edged lower 0.2 percent to 99.468. The Fed kept interest rates unchanged on Wednesday, but painted a relatively upbeat picture of the US economy that suggested it was on track to tighten monetary policy this year.
"The sharp rebound after a pull down below $1,200 and the Asian pricing model, despite the Chinese New Year, seem favourable and we see a lot of bullish signals," said Spencer Campbell, general manager with Kaloti Precious Metals, Singapore.
"We are sort of eyeing the $1,225 levels in the next move if the metal breaks the recent highs of around $1,215."
Spot gold may retest a resistance at $1,219 per ounce as it has found a support at $1,197, according to Reuters technical analyst Wang Tao.
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