2023.12.1409:00:00UTC+00Gold Extends Gains On Fed's Dovish Pivot

Gold prices rose further on Thursday after climbing more than 1 percent in the U.S. trading session overnight following the FOMC rate decision.

Spot gold rose 0.4 percent to $2,035.63 per ounce, while U.S. gold futures were up 2.7 percent at $2,050.55.

Bond yields declined and the U.S. dollar continued its weakness against other major currencies, helping lift bullion's appeal.

On Wednesday, the Federal Reserve kept the target range for the federal funds rate steady at 5.25 to 5.50 percent but signaled three interest rate cuts next year against the backdrop of easing inflation and slowing economic growth.

The median forecast indicates rates will be lowered to 4.6 percent by the end of 2024. During the post-meeting press conference, Fed Chair Jerome Powell acknowledged that rate cuts will be a "topic of discussion" at upcoming meetings.

The Swiss National Bank left rate on hold earlier today while Norway's central bank raised its benchmark interest rate by 25 basis points in a surprise move to combat persistent inflation.

The European Central Bank and the Bank of England are set to leave interest rates unchanged later today, with investors looking for guidance on future rate path.

The monetary policy summary and the minutes from the BoE are due at 7.00 AM ET. Macro-economic projections from the ECB are due at 8.45 AM ET.