The dollar index hit a one-month low on the back of the Fed announcement and was down 0.20 percent at 100.54.
"Real yields were pumped up ahead of the announcement in expectation of a hawkish hike, instead we got a dovish hike with no change in the forward guidance and that has led to some recovery in gold today," Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen, said.
Gold is highly sensitive to rising U.S. interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
"At the same time we had the election in Holland, which didn't increase the political risk in Europe and is acting as a bit of a counter measure to the rally in gold," Hansen added.
Dutch center-right Prime Minister Mark Rutte fought off the challenge of anti-Islam and anti-EU rival Geert Wilders to score an election victory that was hailed across Europe on Thursday by governments facing a rising wave of nationalism.
"Gold's resilience could help strengthen positive yet still fragile gold sentiment," Joni Teves, strategist at UBS in London, said.
"In addition to a general friendliness towards gold for its diversification and hedging properties, lingering uncertainty has likely prevented from shorts becoming aggressive in spite of the challenges that gold has faced in recent weeks."