By Karen Rodrigues
BENGALURU (Reuters) - Gold prices eased on Thursday as the U.S. Federal Reserve forecast a slightly faster pace of interest rate hikes this year, although lingering worries over trade tensions between Washington and Beijing prevented steeper losses.
Spot gold was down 0.1 percent at $1,298.51 per ounce at 0349 GMT. It touched an over one-week low at $1,292.15 an ounce in the previous session.
U.S. gold futures for August delivery rose 0.1 percent to $1,302.20 per ounce.
"It (rate hike) is all priced in and obviously there are a lot of uncertainties looking past this which is supporting gold prices in our view," said Richard Xu, a fund manager at HuaAn Gold, China's biggest gold exchange-traded fund.
"Its muted response to the Federal Reserve increase is because a lot of safe haven demand is going to take place... The trade war drama is not going to end anytime soon, it is probably going to be exasperated over the next month or so."
The U.S. Federal Reserve raised interest rates on Wednesday, and signalled two additional hikes by the end of this year, compared to one previously.
Expectations of further U.S. interest rate increases lowers demand for the non-interest-paying asset.
"Reports that President Trump was preparing to put tariffs on billions of dollars of Chinese goods as soon as Friday raised concerns in the market that economic growth would be impacted. This saw some safe-haven buying emerge," ANZ said in a note.
"Investor demand was also supported by a slightly weaker U.S. dollar in the wake of the Fed decision to raise interest rates."
The dollar slipped back from three-week highs against the yen on Thursday.
In other precious metals, silver fell 0.2 percent to $16.97 an ounce. It hit its highest since April 23 at $17.11 on Wednesday.
Platinum was 0.4 percent lower at $895.55 an ounce, while palladium was nearly unchanged at $1,008.95 per ounce.
(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)