Gold prices reversed losses and traded in the green on Wednesday after the U.S. Federal Reserve announced it will hike rates.
U.S. gold futures advanced 0.3% to $1,722.7.
The U.S. central bank had been expected to raise interest rates by another 75 basis points (bps) at the conclusion of its two-day policy meeting, as it attempts to bring down inflation.
Higher interest rates increase the opportunity cost of holding non-yielding bullion.
Gold prices have dropped more than $300 since climbing past the $2,000-per-ounce level in early March, due to the Fed's rapid rate hikes and the dollar's recent rally.
The dollar, however, eased on the day, increasing gold's appeal among buyers holding other currencies.
"Most are expecting a 75 basis point increase tonight and I think that has already been priced," said Brian Lan, managing director at dealer GoldSilver Central.
Everyone now wants to know what other tools the Fed is going to use to support the economy or if it is just going to be focused on bringing down the high inflation, Lan added.
The International Monetary Fund cut global growth forecasts again on Tuesday, warning downside risks from high inflation and the Ukraine war were materializing and could push the world economy to the brink of recession if left unchecked.
Spot silver dropped 0.76% to $18.46, platinum added 0.85% to $881.08, and palladium gained 0.87% to $2,028.13.