Gold Holds Overnight Gains after Fed Keeps Rates Steady

Gold edged up on Thursday, clinging to gains from the previous session when it rose 1.5% to a two-week high, on a weaker dollar after the US Federal Reserve left interest rates unchanged. 
The Federal Reserve said near-term risks to the US economic outlook had diminished, potentially leading to a resumption of monetary policy tightening this year. However, the Fed gave no indication whether it would raise rates at its next meeting in September. 
Spot gold inched up 0.2% to $1,341.60 an ounce at 0715 GMT. Bullion on Wednesday touched a high of $1,342.18, its best since July 14. 
US gold rose 1.1% to $1,341.40 an ounce. 
Gold prices may surpass the more-than-two-year high hit earlier this month and might test $1,400 levels, said V Hareesh, Research Head, Geojit BNP Paribas. 
"Gold will come down only after Fed raises the rates. Otherwise, prices will continue to rise," he added. 
Gold is sensitive to rising US rates, which would lift the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.