Gold Edges Higher as Fed Hike Bets Fall

The price of gold rose on Thursday as investors reduced their bets on an immediate tightening cycle after the Federal Reserve kept interest rates unchanged.

The Fed's decision to keep the target range at 3.5% to 3.75% with three policymakers favoring a quarter-point increase was seen as less urgent than expected by analysts, helping gold recover despite the Fed's continued concern over inflation.

CME FedWatch pricing showed the probability of a September increase had fallen to about 63% from roughly 81% before the decision.

The next catalyst for gold is the June Personal Consumption Expenditures report, due at 8:30 am ET on Thursday. A softer print should keep rate expectations down, weaken the dollar, and support a push towards $4,500.