Gold dips in choppy trade after Fed rate hike

Gold slipped on Thursday, giving back some of its overnight gains, in choppy trading after the Federal Reserve raised US interest rates for the first time in nearly a decade. 

The US central bank's policy-setting committee raised the range of its benchmark interest rate by a quarter of a percentage point, ending a lengthy debate about whether the economy was strong enough to withstand higher borrowing costs. 

Gold has slumped nearly 10 percent this year, largely on uncertainty around the timing of the US rate hike and on fears that higher rates would hit demand for the non-interest-paying precious metal. 

Though the Fed decision removes an overhang for gold prices, the focus now shifts to the central bank's pace of future rate increases. Spot gold dipped 0.2 percent to USD 1,070.70 an ounce by 0037 GMT. 

The metal had rallied before the Fed decision on Wednesday and managed to hold on to most gains post the central bank statement, ending the day up 1.2 percent. US gold GCcv1 fell 0.6 percent to USD 1,070.50, following a 1.4 gain in the previous session.

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