Gold vacillated after inching up in early trade on Thursday as the dollar recovered from a dive following the U.S. Federal Reserve's widely expected decision to raise interest rates, although it left the outlook on rates unchanged.
Spot gold was down 0.17 percent at $1,253.20 an ounce as of 11:57 a.m. ET, after rising nearly 1 percent in the previous session.
U.S. gold futures rose 0.55 percent percent at $1,255.50.
The dollar index, which tracks the greenback against a basket of six major currencies, was 0.26 percent to 93.67 after falling 0.7 percent on Wednesday.
The Federal Reserve raised interest rates by a quarter of a percentage point to a range of 1.25 percent to 1.50 percent on Wednesday, with policymakers projecting a short-term jump in U.S. economic growth from the Trump administration's proposed tax cuts.
Underlying U.S. consumer inflation slowed in November, held down by weak healthcare costs and the biggest drop in apparel prices in nearly two decades, which could impact the pace at which the Federal Reserve raises interest rates next year.