Gold prices flutter higher as Fed holds rates steady

Fed Chair Jerome Powell said the next move would depend on the data but that there was unlikely to be an increase.

Traders were relieved that Powell slammed the door shut for further hikes, helping gold prices climb back above $2,300, City Index senior analyst Matt Simpson said. [USD/] [US/]

Following the meeting, U.S. short-term interest-rate futures rose, as traders added to bets that the Fed will deliver at least one rate cut this year.

Lower interest rates increase the appeal of holding non-yielding bullion.

The U.S. non-farm payrolls report is due on Friday.

"What traders would love to see now is a softer set of NFP figures... We're fast approaching the second half of the year, and in all the time central banks continue to pile into physical gold, I suspect gold can hold above $2,000 for the remainder of the year and break above $2,500," Simpson added.

Spot silver rose 0.4% to $26.75 per ounce.

Platinum gained 1% to $959.40 after hitting a two-week high earlier in the session. Palladium advanced 0.5% to $953.30.

Platinum's discount to palladium has fluctuated year-to-date from -$200 to zero, indicating subdued investor interest and mixed views around global macro and individual fundamentals, analysts at MKS PAMP wrote in a note.