Gold rallied more than 1.5 percent to a one-week high on Wednesday, as the U.S. Federal Reserve called for gradual monetary tightening after raising interest rates by an expected 25 basis points for the second time in three months.
The central bank said in its policy statement that further hikes would only be "gradual," with officials sticking to their outlook for two more rate hikes this year and three more in 2018.
The U.S. dollar index fell to a two-week low, helping lift gold which is denominated in dollars and so became cheaper for holders of other currencies, while the 10-year Treasury yields tumbled and U.S. stock markets extended gains.
Spot gold was up 1.6 percent at $1,217.81 an ounce by 3:01 p.m. EDT (1901 GMT), after rising to $1,219.36, the highest since March 7. It was on track for its biggest one-day jump since September.
U.S. gold futures , which closed ahead of the Fed statement, settled down 0.2 percent at $1,200.70.
March 16, 2017)