Gold Bounces After Near Six-Week Low Amid Fed Rate Hike

Gold prices inched up on Thursday after hitting a near six-week low in the previous session, as investors weighed the impact of the U.S. Federal Reserve's interest-rate increase.

The Fed raised interest rates on Wednesday and signaled further tightening may follow, with new central bank chief Kevin Warsh joining a unanimous decision to acknowledge the Trump administration's inability to control inflation.

Rising interest rates tend to pressure gold by increasing the appeal of interest-bearing assets. Spot gold was up 0.5% at $4,283.45 per ounce, while U.S. gold futures for December delivery were down 1.5% at $4,321.80.

The Bank of England is set to keep interest rates on hold on Thursday, but investors are watching for any hint that surging energy prices could force it to follow the Fed's example.