• Gold rose for a second day on Thursday, hitting a six-week high, on rising demand for the yellow metal as the dollar dropped to a 13-month low after the U.S. Federal Reserve indicated that it would keep to a slow path of monetary tightening.
Spot gold rose 0.3 percent to $1,264.31 per ounce at 0352 GMT. It climbed as high as $1,264.90 an ounce earlier in the session, the most since June 15.
• The Fed's statement followed a two-day policy meeting that ended on Wednesday where the central bank kept interest rates unchanged but expected to start winding down its massive holdings of bonds "relatively soon."
• "We think that gold has turned something of a corner and may now be in a position to retest its recent highs," said INTL FCStone analyst Edward Meir.
"With the Fed now likely on hold at least till the end of the year and U.S. bond yields falling, there are some forming tail-winds that should propel prices higher over the short term," Meir said.
• "Investors have gradually priced in the whole event and considering that the Fed sees the near-term risk of the economy is neutral, I don't think the market will expect a third rate hike in the foreseeable future or at least in this quarter," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
"So, gold investors have reason to be bullish just a little bit."
• Spot gold may break a resistance at $1,264 per ounce and rise more to the next resistance at $1,271, according to Reuters technical analyst, Wang Tao.
• In other precious metals, silver rose 0.6 percent to $16.73 per ounce and hit its highest since June 29 earlier in the session.
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