Investing.com - Gold prices dipped on Thursday, a day after the Federal Reserve stood pat on monetary policy and indicated that interest rates would likely remain on hold for an extended period.
Gold futures for June delivery, traded on the Comex division of the New York Mercantile Exchange, were down 0.7% at $1,275.15 per ounce by 1:25 AM ET (05:25 GMT).
In a news conference following the central bank meeting, Fed Chairman Jerome Powell said the central bank’s “policy stance is appropriate right now” and that they “don’t see a strong case for moving in either direction.”
Trade volumes remained thing with markets in Japan and China closed for holidays.
The U.S. dollar index, which often moves in directions opposite to the precious metal, also slipped 0.1% to 97.338.
A report by CNBC that suggested that the U.S. and China may announce a trade deal next Friday also supported risk sentiment and put pressure on the safe-haven gold.
The latest round of trade talks between the U.S. and China wrapped up in Beijing on Wednesday with the U.S. Treasury Secretary Steven Mnuchin calling the meetings "productive".
Negotiations will continue to Washington next week. Citing unnamed sources, CNBC reported on Wednesday that the two countries may reach a trade agreement by next Friday.