Gold on MCX settled up 0.34% at 28509 as the U.S. Federal Reserve's cautious message on interest rates left the dollar around five-week lows, making bullion cheaper those holding other currencies. The Fed raised U.S. rates, as expected, but its earlier forecast of three rate increases this year remained unchanged, disappointing some investors who had hoped for hints of a possible fourth hike in 2017. Rate rises lead to higher bond yields, which increase the opportunity cost of holding non-yielding bullion and tend to boost the dollar, in which gold is priced.
Trading Ideas:
* Gold trading range for the day is 28336-28616.
* Gold gained as the dollar plumbed to fresh five-week lows after the U.S. central bank's signal of a slower pace of rate increases this year disappointed dollar bulls.
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