Gold prices traded higher on Thursday, the dollar weakened, and Treasury yields retreated as a hawkish interest-rate hold by the Federal Reserve fueled hopes that the U.S. central bank is done with rate hikes.
Spot gold edged up 0.3 percent to $1,988.35 per ounce, while U.S. gold futures were up 0.4 percent at $1,996.25.
As expected, the Fed left its benchmark rate unchanged at 5.25 percent to 5.50 percent on Wednesday.
Fed Chair Jerome Powell acknowledged that financial conditions faced by businesses and households had tightened substantially in recent months - raising hopes that the U.S. central bank may now be finished with the most aggressive tightening cycle in four decades.
Trading later in the day may be impacted by reaction to reports on initial jobless claims, labor productivity and factory orders ahead of the all-important jobs report for October due on Friday.
Forecasts for the jobs report reveal a slowdown in hiring and wage growth in the month.
At 8:00 am ET, the Bank of England is set to announce its monetary policy decision. Economists expect the Monetary Policy Committee to leave the benchmark lending rate at 5.25 percent as inflation concerns ease.
