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Gold prices fell on Thursday as investors booked profits after a more than 1.5 percent rise in the previous session, opting for riskier assets like equities as the U.S. Federal Reserve stood pat on interest rates.

"People are expecting that the Fed is going to raise rates for sure in December. So, they have started to take profits," said Richard Xu, a fund manager at HuaAn Gold, China's top gold exchange-traded fund (ETF). "The first phase of a gold run, which is largely driven by the Fed's inaction to raise rates, is over. The market is now looking three months ahead and taking positions accordingly."

"The rate environment looks less accommodative even it emains on a more gradual slope, meaning that oversized rallies in gold may not have much room to run," INTL FCStone analyst Edward Meir said in a note.

"Indications out of the Federal Reserve that a 2016 rate increase is still very much a live possibility may restrict gains to gold above $1,340," said Sam Laughlin, precious metals trader with MKS PAMP Group. "Initial support for the metal sits toward $1,330 ... while resistance toward $1,340 is keeping a lid on any moves higher."

“Gold prices remain to be largely influenced by the greenback and interest rate expectations,” said Barnabas Gan, an economist at Oversea-Chinese Banking Corp. in Singapore. He kept a forecast for gold to climb to $1,350 if the U.S. central bank hikes once this year, or $1,400 if there’s no increase.

Reference: Bloomberg, Reuters