Investing.com - Gold prices were trading near their highest levels in two weeks in midday trade on Thursday, after a less hawkish than expected Federal Reserve and amid growing concerns over trade tariffs.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange were up $6.50, or 0.49% to $1,328.00 a troy ounce by 11:52 AM ET (13:52GMT). That was its highest level since March 7.
Gold traded higher on Thursday after the Federal Reserve raised interest rates the day before but stuck to its forecast for two more hikes this year.
Some investors had expected the Fed to project three more rate hikes this year so the decision to stick to its forecast for two additional hikes was seen as less hawkish than expected.
Expectations for a slower pace of rate hikes tend to buoy gold, which struggles to compete with yield bearing assets when interest rates rise.
Prices of the precious metal received an additional boost from increased safe haven demand amid growing concerns over the prospect of a U.S.-led trade war.
U.S. President Donald Trump was expected to unveil up to $60 billion in new tariffs on Chinese imports at around 12:30PM ET (16:30GMT). The Trump administration already imposed tariffs on U.S. steel and aluminum imports earlier this month.
Investors are concerned that major U.S. trade partners could retaliate with similar measures and threaten the outlook for global growth.
Elsewhere in metals trading, silver fell 0.21% to $16.385 a troy ounce by 11:52 AM ET (13:52GMT), platinum slid 1.01% at $948.10 a troy ounce, palladium traded down 1.32% to $971.75 a troy ounce, while copper lost 2.14% to $3.014 a pound.