Gold prices jumped on Thursday as the dollar fell sharply post-FOMC press conference. Spot gold rose 0.7 percent to $1,745.79 per ounce, while U.S. gold futures were up 1.4 percent at 1,743.60.
The U.S. dollar struggled against its peers, slumping to a three-week low versus the Japanese yen, after Fed Chair Jerome Powell reiterated the central bank's strong commitment to reducing inflation but hinted at a slowdown in the pace of rate hikes at future meetings.
After announcing another 75-bps rate hike at the end of a two-day policy meeting, Powell said the next move will depend on incoming data.
The Fed's next monetary policy meeting is scheduled for September 20-21, with CME Group's FedWatch tool currently indicating a 59.2 percent chance of a 50-basis point rate hike and a 36.7 percent chance of another 75-basis points rate hike.
U.S. GDP data for the second quarterly will be released later in the day and economists expect negative growth.
Investors also awaited a phone call between U.S. President Joe Biden and China's Xi Jinping, which could touch on U.S. tariffs and other points of tension.
