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By Kavya Guduru
(Reuters) - Gold steadied on Thursday, as an easing dollar offset pressure from a large interest rate hike from the U.S. Federal Reserve, with other major central banks also taking cues.
Spot gold inched up 0.2% to $1,836.64 per ounce by 11:16 a.m. ET (1516 GMT). U.S. gold futures rose 0.9% to $1,836.20.
A Fed that now seems committed to staving off inflationary pressures by raising rates is a bit of a drag on gold, keeping it choppy and in a range, said David Meger, director of metals trading at High Ridge Futures.
Prices rose as much as 1.9% on Wednesday as the dollar retreated after the Fed approved its largest interest rate increase in more than a quarter of a century but said such steep hikes may not be common.
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While inflation and economic uncertainties are usually supportive of safe-haven gold, higher rates increase the opportunity cost of holding non-yielding bullion.
Buoying gold's appeal among overseas buyers, the dollar retreated sharply on Thursday. [USD/] [US/]
Concerns about surging inflation also prompted other central banks to tighten monetary policies, with the Swiss National Bank unexpectedly raising its policy rate for the first time in 15 years and the Bank of England also increasing rates.
Gold's safe-haven demand could fade further if the Fed successfully fights inflation without pushing the U.S. into a recession, said Carsten Menke, head of Next Generation Research at Julius Baer.
"Commodity trading advisor liquidations can likely continue to weigh on the yellow metal, increasingly adding pressure on this cohort to liquidate their longs," TD Securities said in a note.
Elsewhere, spot silver rose 0.2% to $21.70 per ounce, platinum gained 0.6% at $944.98 and palladium was unchanged at $1,861.03.
(Reporting by Kavya Guduru in Bengaluru; Editing by Amy Caren Daniel)
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