FOMC remained subject to debate marking the latest attempt to boost inflation.


Gold prices gained in Asia on Thursday as the Federal Reserve held steady on interest rates as expected, though the outlook for a possible hike this year by the FOMC remained subject to debate.

Gold for December delivery on the Comex division of the New York Mercantile Exchange rose 0.48% to $1,337.75 a troy ounce.

Overnight, gold prices extended strong overnight gains during North America's session on Wednesday, climbing to a more than one-week high.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

Earlier on Wednesday, the Bank of Japan kept rates unchanged at -0.1% following its latest meeting and announced that it would modify its policy framework, marking the latest attempt to boost inflation.

Among the changes, the BoJ said it would introduce yield curve controls, eliminate the maturity range of its bond purchases and abandon its monetary base targets.