Gold makes a U-turn after hitting weekly lows

• XAU/USD bounces from weekly lows
• Dollar fails to hold onto post Fed gains

Gold prices quickly recovered post-Fed losses and climbed to fresh daily highs in the last minutes. 

After bottoming out at a 1-week low of $1,332 an ounce as knee-jerk reaction to FOMC statement, spot made a U-turn and rose quickly to the $1,347 zone, striking fresh daily highs. At time of writing, XAU/USD is trading at $1,345/oz, 0.52% above its opening price and on track to post the first daily gain in three.

Fed leaves rates unchanged, hints at more hikes

As expected the FOMC voted for keeping the target range for the federal funds rate at 1-1/4 to 1‑1/2 percent. The central bank expects inflation to move up this year and to stabilize around the 2% objective over the medium term. “The Committee expects that economic conditions will evolve in a manner that will warrant further gradual increases in the federal funds rate,” the statement reads.