Gold Steady Above $1200 after Fed

Gold retained losses from overnight on Thursday, as the Federal Reserve characterized the recent slowdown in the U.S. economy as only transitory, not ruling out an interest rate hike this year.

Spot gold was trading flat at $1,204.51 an ounce by 0047 GMT, after losing 0.6 percent on Wednesday.  The Fed downgraded its view of the U.S. labor market and economy after its two-day policy meet and said the poor performance was in part due to transitory factors.

The Fed’s guidance differed little from its last meeting, but this time the central bank did not effectively rule out hiking rates at its next meeting.