Gold Steady Below $1100 after Fed

Gold hovered not far from a 5-1/2-year low early on Thursday after the Federal Reserve said the U.S. economy and job market continue to strengthen, supporting a possible interest rate rise when the Fed meets again in September.

Following a two-day policy meeting on Wednesday, policymakers said they felt the economy had overcome a first-quarter slowdown and was “expanding moderately” despite a downturn in the energy sector and headwinds from overseas.

Spot gold was flat at $1,096.75 an ounce by 0036 GMT. It sank to as low as $1,077 last week, its weakest since February 2010, after a selloff in New York and Shanghai and has since struggled to recover above $1,100.