WASHINGTON (dpa-AFX) - Gold prices surged on Thursday after the Federal Reserve announced its widely expected decision to raise interest rates by 50 basis points, but indicated larger 75-basis-point increases weren't in play for the next couple of meetings.
Spot gold climbed 0.9 percent to $1,897.62 per ounce, while U.S. gold futures were up 1.5 percent at $1,897.34.
After outlining plans to reduce the Fed's near $9 trillion balance sheet, Fed Chair Jerome Powell said that inflation is flattening out and that the economy is continuing to perform well.
He expressed confidence the U.S. central bank could engineer a 'soft landing' that tames inflation without sending the economy into a recession.
His comments helped eased investor concerns about a more aggressive move at the upcoming meetings.
The dollar was gradually regaining its footing after the Fed's less-hawkish move caused its biggest drop in nearly two months overnight.
Looking ahead, the Bank of England's monetary policy announcement is due at 7:00 am ET. The BoE is widely expected to raise its key rate by 25 basis points to 1 percent from 0.75 percent.
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