Gold prices rose for a second session on Thursday after the US Federal Reserve held interest rates steady as expected at the end of a two-day policy meeting, while investors awaited US-China trade talks. Spot gold rose 0.2 percent to $1,307.05 per ounce at 0705 GMT. US gold futures for June delivery rose 0.2 percent to $1,307.60 per ounce.
"The inflation numbers this week did point to a potential acceleration in those (interest) rate hikes... But after the FOMC meeting yesterday that appears to be less likely and so we're seeing assets such as gold being bought at the back of that," said ANZ analyst Daniel Hynes. Non-yielding gold is highly sensitive to rising US interest rates as it becomes less attractive compared with assets that bear interest.
The Fed left its benchmark interest rates unchanged in a target range of between 1.50 percent and 1.75 percent. The central bank raised rates in March and forecasts another two increases this year. Investors also awaited the US-China trade talks between US Treasury Secretary Steven Mnuchin and Chinese Vice Premier Liu He due on Thursday.
Spot gold may bounce again towards a resistance at $1,317 per ounce as it has found a strong support at $1,302, according to Reuters technical analyst Wang Tao.
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