There is also a buzz in the market that the comprehensive gold policy is ready and center may announce it soon
Sentiment looks positive with dollar index and equity markets rising
In Mumbai's Zaveri Bazar, standard gold closed at Rs 33,365 per 10 gram, a price higher than previous close of Rs 33,265, seen in November 2013
Gold is likely to consolidate in the $1,315-$1,320 range
Price hike due to safe-haven buying; trend likely to continue
Escalation of trade tensions between the US and China ahead of their trade talks also led to safe-haven buying
Fed raised interest rates four times last year and has signalled it will probably lift borrowing costs twice in 2019, though some central bank officials have said they will be patient in raising rates
Gold is often used as a hedge against political and economic uncertainty
Customers stay away from buying, price quoting at discount to landed cost of imported gold
Most Asian shares were propped up on Tuesday by hopes that Washington and Beijing may be inching towards a trade deal after positive comments from U.S. Commerce Secretary Wilbur Ross
The dollar index was hovering about a one-week peak
Globally, gold traded lower by 0.33% at $1,256.20 an ounce and silver was down by 1.02% at $14.69 an ounce in New York
Prices crossed the 200-day moving average around $1,252 an ounce before the Fed's statement on Wednesday
The Federal Reserve is widely expected to raise interest rates for the fourth time this year
US gold futures were 0.2% higher at $1,251.4 per ounce
Spot gold was down 0.3% at $1,234.71 per ounce as of 0422 GMT, after hitting its highest since Oct. 26 at $1,241.86 an ounce in the previous session
Globally, gold fell 0.11 per cent to $1,220.80 an ounce and silver by 0.21 per cent to $14.46 an ounce
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Bullion traders said the slide in gold prices was mostly due to absence of worthwhile activity
Globally, gold rose 0.82 per cent to $1,225.10 an ounce in Singapore