Gold Prices Rise as Weaker Dollar Trumps Fed Decision

Gold prices rose on Thursday as a softer US dollar made it more affordable for buyers abroad. The precious metal's value increased by 0.3% to $4,076.52 per ounce.

The Federal Reserve kept interest rates unchanged the previous day, and UBS analyst Giovanni Staunovo attributed the gold price move to the Fed's decision and a weaker US dollar.

'The move is primarily driven by a weaker US dollar,' Staunovo said.

However, higher-for-longer interest rates tend to diminish gold's appeal due to its non-yielding characteristic.

The Fed's commitment to bring inflation down was seen as positive for the US economy but may not have been enough to boost gold demand.