Gold held steady early on Tuesday as easing Asian stock markets and geopolitical concerns helped the yellow metal hover close to one-month peaks.
With the economy at full employment and inflation expected to reach the Fed's 2-percent goal by next year, the Fed needs to keep raising U.S. interest rates gradually or risk overheating the economy, Williams said.
Nearly all policymakers at the May 2-3 meeting also said they favoured beginning the wind-down of the U.S. central bank's massive holdings of Treasury debt and mortgage-backed securities this year.
Spot gold was down 0.1 percent at $1,256.61 per ounce by 0053 GMT. It rose about 0.6 percent on Wednesday.
"A nine-month extension would normalize OECD inventories by early 2018, in our view, but we see risks for a renewed surplus later next year if OPEC and Russia's production rises to their expanding capacity and shale grows at an unbridled rate," the Goldman analysts said.
At the Multi Commodity Exchange, the June month contract of crude oil rose by Rs 34, or 1.04 per cent, to Rs 3,311 per barrel in a business turnover of 2,024 lots.
Trump was hit on Friday by embarrassing leaks that a senior adviser was a "person of interest" in a probe of possible collusion with Russia during last year's election campaign and that Trump had boasted to Russian officials of firing the man heading the investigation.
* Spot gold was flat at $1,259.99 per ounce by 0055 GMT, after earlier touching its strongest since May 1 at $1,263.02. It rose about 2 percent on Wednesday in its biggest one-day percentage gain since June last year.
Spot gold was up 0.1 percent at $1,231.06 per ounce at 0057 GMT. On Monday, t touched its highest since May 4 at 1,237.26.
The next round of cuts will be on the same terms as the existing deal, Saudi energy minister Khalid al-Falih said at a joint briefing in Beijing with his Russian counterpart Alexander Novak.
North Korea said on Monday it had successfully conducted a newly developed mid-to-long range missile test on Sunday, supervised by leader Kim Jong Un and aimed at verifying the capability to carry a "large scale heavy nuclear warhead."
Normalising the balance-sheet of the world's most influential central bank is on the cards if the US economy continued to grow in line with expectations, said the chief of the New York Fed, the most influential of all state Federal Reserve banks of the US.
Brent crude futures , the international benchmark for oil prices, were at $50.82 per barrel at 0120 GMT on Friday, up 5 cents from their last close.
"Protectionism can have a siren-like appeal," said Dudley, a close ally of Fed Chair Janet Yellen and a key decision-maker on U.S. interest-rate policy.
The Labor Department said on Wednesday that import prices jumped 0.5 percent last month after gaining 0.1 percent in March. It was the fifth straight monthly increase and beat economists' expectations for a 0.2 percent advance.
Rising stocks and higher bond yields raise the opportunity cost of holding non-yielding bullion, while a stronger dollar makes gold more expensive for holders of other currencies.
Spot gold was up 0.1 percent at $1,227.08 per ounce as of 0054 GMT, after touching a seven-week low of 1,224.86 in the previous session.
Spot gold rose 0.2 percent to $1,229.90 per ounce as of 0124 GMT, after touching 1,224.86 earlier in the session, its lowest since March 17.
"Overall the rupee has been strengthening this year due to higher foreign fund inflows due to reforms like GST. But now exporters are also selling dollars on one hand and they are started covering (buying dollars) their position on the other," FirstRand Bank Treasury Head Harihar Krishnamurthy told PTI.
Spot gold rose 0.2 percent to $1,240.51 per ounce by 0245 GMT. It fell 1.5 percent in the previous session - its worst single-day drop since Nov. 23 - breaching both its 50-day and 200-day moving averages. Prices hit a low of $1,236.01 on Wednesday, a level not seen since March 21.
The Fed's pause comes after it modestly raised its benchmark short-term rate in December and March. Most economists expect it to do so again when it next meets in mid-June.
U.S. crude stockpiles fell less than expected last week, while gasoline inventories grew as demand remained weak, the Energy Information Administration said on Wednesday, keeping concerns about global supply on a simmer.
After four-day consolidation, the market might gain some strength in next couple of sessions to move towards 9,400 level on the Nifty, experts feel.
While markets do not expect the Federal Reserve to raise interest rates at its policy meeting later on Wednesday, the central bank is tipped to lift rates twice more this year, with one likely as early as next month, which would be supportive of the dollar.
Spot gold was down 80 cents at $1,256 per ounce, as of 0327 GMT. Bullion on Tuesday hit $1,251.37 per ounce, its lowest since April 10.