27.07.202310:05:00UTC+00Gold Inches Higher On Dollar Weakness Following Powell's Remarks

Gold prices rose slightly on Thursday and the dollar traded weak after the U.S. Federal Reserve raised interest rates by 25 basis points, as widely expected, and downplayed the prospect of a U.S. recession this year.

Spot gold edged up 0.2 percent to $1,975.34 per ounce, while U.S. gold futures were up 0.3 percent at $1,975.70.

The Fed raised the target range for the federal funds rate by 25 basis points on Wednesday, following a pause last month.

In his post-meeting press conference, Fed Chair Jerome Powell noted that a rate cut is unlikely this year, but the central bank will make decisions meeting by meeting after watching incoming economic data.

Traders await further direction from the ECB rate announcement later in the day.

The European Central Bank looks all but certain to hike the deposit rate by 25 bps but there is considerable uncertainty about the central bank's guidance for September's monetary policy.

The Bank of Japan's policy decision is due on Friday, with traders looking for any hints of a shift in its yield-curve control policy.

In economic releases, reports on U.S. durable goods orders for June, U.S. GDP growth rate for the second quarter and U.S. weekly jobless claims are set to be published in the New York session.