Gold Prices Inch Lower After US Fed Held Key Rates Steady; Dollar Gains

The precious yellow metal gold decreased in price in Friday's session after dollar strengthened as the US Federal Reserve kept key rates unchanged on overall strong US economy that is lagging only marginally due to drop in the business investment growth. The fourth hike by the US central bank for the year is expected in December.

The statement by Fed reflected little change in its outlook for the economy since its last policy meeting in September. Inflation remained near its 2 percent target, unemployment fell, and risks to the economic outlook were still felt to be "roughly balanced."

Spot gold was trading lower by 0.1% at $1221.78 an ounce at 0124 GMT. On the previous trading day, gold prices fell to the lowest in a week to $1,219.59 per ounce. US gold futures traded lower by 0.2% to $1223 an ounce.

Meanwhile Asian stocks dropped in trade on Friday after the US Fed maintained its stance to continue raising interest rates gradually.

In the domestic markets, gold in 22K is priced at Rs. 31,000 per 10 gm while 24K gold is available for Rs. 32,050 per 10 gram.

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