PRECIOUS-Gold falls after U.S. Fed dampens hopes for more stimulus

(Updates prices)
* Fed to hold rates near zero until at least 2023
* U.S. jobless remain at higher levels
* Platinum, palladium dips over 3%
* Interactive graphic tracking global spread of coronavirus:
https://graphics.reuters.com/world-coronavirus-tracker-and-maps/

By Sumita Layek
Sept 17 (Reuters) - Gold prices fell on Thursday to the
lowest in more than a week, after the U.S. Federal Reserve
dashed investors' hopes for more stimulus to support the
coronvirus-hit economy.
Spot gold XAU= dropped 0.8% to $1,943.87 per ounce by 1:56
p.m. EDT (1756), after falling to its lowest level since Sept. 9
at $1,932.36.
U.S. gold futures GCv1 settled down 1.1% to $1,949.90.
"Despite the fact that the Fed was quite dovish, it would
seem that for the gold market it wasn't dovish enough," said
Bart Melek, head of commodity strategies at TD Securities.
"There is concern that with no more Quantitative Easing,
there might be less momentum for gold."
The Fed pledged to keep rates pinned near zero levels until
inflation was on track to "moderately exceed" its 2% inflation
target "for some time." Bullion has gained 28% so far this year, helped by near-zero
interest rates globally and demand for a hedge against perceived
inflation.
However, the U.S. central bank also stated that it expected
a faster economic recovery than previously forecast, with
unemployment falling more quickly than it had expected in June.
"Many were hoping for more clarity on how the Fed plans to
stoke inflation in the coming months," Kitco Metals senior
analyst Jim Wyckoff said in a note.
Wyckoff added that even though we're seeing selling pressure
in gold and silver, "such situations have also invited metals
bulls to step in and buy the dips to keep the overall price
uptrends alive in gold and silver."
Meanwhile, U.S. new jobless claims remained perched at
higher levels last week suggesting stalling labor market
recovery. Elsewhere, silver XAG= declined 1.1% to $26.93 per ounce,
platinum XPT= dipped 3.7% to $932.89 per ounce, and palladium
XPD= fell 3.2% to $2,323.76.