Gold dips

Bengaluru : Gold prices inched lower on Thursday as investors took profits after the yellow metal hit a two-week high in the previous session on a weaker dollar after the U.S. Federal Reserve disappointed investors expecting more hawkish comments on interest rate rises.

The Fed raised interest rates on Wednesday and forecast at least two more hikes in 2018, contrary to three more increases most market watchers expected. In its first policy meeting under new Fed chief Jerome Powell, the U.S. central bank indicated that inflation should finally move higher after years below its 2 percent target and that the economy had recently gained momentum.

“The FOMC statement was more dovish than we thought warranted. At some stage, the Fed will have to grasp the nettle, but the danger is that in doing so, it will bring forward a credit crunch,” said Alasdair Macleod, head of research with Toronto-based Goldmoney Inc.