Gold

Gold prices remained locked just below $1,300 an ounce on Wednesday. In raising its benchmark overnight lending rate a quarter of a percentage point to a range of between 1.75 percent and 2 percent, the Fed dropped its pledge to keep rates low enough to stimulate the economy "for some time" and signaled it would tolerate above-target inflation at least through 2020.

Fed policymakers projected a slightly faster pace of rate increases in the coming months, with two additional hikes expected by the end of this year, compared to one previously, which would weigh on gold in the middle and longer term. In the near term, gold were muted to the Fed's move as it was widely expected and had been priced in.

Investors are expecting policy announcements from the European Central Bank (ECB) on Thursday which could affect gold prices. Any hints from the ECB to tighten monetary policy will drag bullion down. Sans that, gold could reground upward momentum and breach above the resistance of $1,300.

Silver

Silver rose 0.5 percent at $16.94 an ounce after hitting a seven-week high of $16.99. It failed to cross over previous highs of $17.30. Despite of a successful breach above the key mark of $17, gold saw no remarkable gains, suggesting limited upward momentum in silver. A consolidation in gold and sharp gains in silver could provide a good opportunity for two-way trading in the white metal.

 
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                       Cheng Yu