Gold turned lower on Thursday, consolidating from a 2.5 percent surge in the previous session when the Federal Reserve cut the number of interest rate rises it forecasts for this year, sending the dollar sharply lower.
The U.S. central bank held interest rates steady and indicated that it would tighten policy this year, but fresh projections showed policymakers expect two quarter-point increases by year-end, half the number forecast in December.
Spot gold was down 0.4 percent at $1,257.06 an ounce at 3:20 p.m. EDT (1920 GMT), after climbing 0.7 percent to $1,270.90.
"Yesterday was the excitement. Today is more the consolidation phase," said James Steel, chief metals analyst for HSBC Securities in New York, referring to the prior session's rally in response to the Fed's dovish statement.
U.S. gold futures for April delivery settled up 2.9 percent at $1,265 an ounce. The futures market's move higher was due to its lower close prior to the Fed statement on Wednesday.