Investing.com - Gold prices trimmed gains on Thursday, after the release of upbeat U.S. data but the precious metal remained supported near one-week highs as the Federal Reserve's latest policy statement continued to weigh on the U.S. dollar.
Comex gold futures were up $7.40 or about 0.59% at $1,256.00 a troy ounce by 08:40 a.m. ET (12:40 GMT), just off a one-week high of $1,261.50 hit earlier in the day.
Dara on Thursday showed that U.S. retail sales rose for the third-straight month in November, while a separate report showed that U.S. initial jobless claims fell unexpectedly last week.
In a widely expected move, the Fed raised interest rates by 0.25 basis points to 1.50% at the conclusion of its policy meeting on Wednesday.
However, the central bank did not change its projections for 2018, which include three more interest rate hikes in both 2018 and 2019, disappointing expectations for four rate hikes next year.
In other news, Congressional Republicans reached a deal on final tax legislation on Wednesday, clearing the way for final votes next week.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.11% at 93.32, its lowest since December 6.
Gold is sensitive to moves in both U.S. rates and the dollar. A weaker dollar makes gold less expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, silver futures were up 0.73% at $15.98 a troy ounce.