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Spot gold was steady at $1,319.72 per ounce by 0308 GMT. Prices rose to their highest since May 11 at $1,323.34 on Wednesday. U.S. gold futures were up 0.6 percent at $1,317.70 per ounce.

Spot gold has risen 2.8 percent so far this month.

·       The Fed held U.S. interest rates steady on Wednesday but said it would be patient in lifting borrowing costs further this year as it pointed to rising uncertainty about the economic outlook.

·       “Gold is getting a double whammy from a dovish Fed and U.S.-China trade talks. The U.S. dollar has been sold off across the board, supporting gold,” said Jeffrey Halley, senior market analyst, OANDA.

Meanwhile, attention turned towards the U.S. and China high-level trade talks that began on Wednesday, aimed at digging out from their months-long trade war.

·       Investors are worried that Washington’s criminal charges against Chinese company Huawei and its chief financial officer could hurt the talks.

If the two sides cannot reach a deal soon, Washington has threatened to more than double tariffs on Chinese goods on March 2.

·       ”(I) Expect gold to stay reasonably firm particularly through the trade talks and consolidate above $1,300 in the near term. But,$1,350 is going to be tough to crack and one needs more risks in the market to push gold higher,” Halley said.

·       Spot gold has gained nearly 14 percent since hitting more than 1-1/2-year lows in August, mostly due to tumultuous stock markets and on expectations that the Fed could pause its multi-year-rate hike cycle.

·       Palladium fell 0.1 percent to $1,359.50, after touching a record high at $1,434.50 on Jan. 17.

Silver fell 0.3 percent to $16.02 per ounce, after touching $16.10 in prior session, its highest since July 2018.

Platinum was up 0.4 percent at $811.50.