WORLD CAPITALS, 22nd March, 2023 (WAM) -- Gold prices climbed on Wednesday after the U.S. Fed toned down its aggressive approach to reining in inflation.

Spot gold was up 1.7% at $1,973.52 per ounce by 3:56 p.m. EDT (1956 GMT), after advancing as much as 2%. U.S. gold futures settled 0.4% higher at $1,949.60 before the Fed announcement, Reuters reported.

The Fed raised interest rates by a quarter of a percentage point, but indicated it was on the verge of pausing further increases in borrowing costs amid recent turmoil in financial markets.