Gold price traded higher due to a weaker U.S. dollar

Gold price traded higher due to a weaker U.S. dollar. The U.S. dollar declined against the other currencies on the results of the Fed's monetary policy meeting. The Fed kept its monetary policy unchanged. 2 of 17 Fed officials want to wait until 2016 before to start raising interest rates.

Economic growth forecast for 2015 was downgraded, while forecasts for 2016 and 2017 were upgraded. The economy is expected to grow 1.8% - 2.00% in 2015, down from 2.3% - 2.7%.

There were no signals on the timing when the central bank starts raising its interest rate.

The Fed noted that it will start hiking its interest rate "when it has seen further improvement in the labor market and is reasonably confident that inflation will move back to its 2 percent objective over the medium term".

U.S. consumer price inflation data also supported gold price. The U.S. consumer price inflation rose 0.4% in May, missing expectations for a 0.5% increase, after a 0.1% gain in April. It was the largest rise since February 2013.

The increase was driven by higher gasoline prices, which jumped 10.4% in May, the biggest gain since June 2009.

On a yearly basis, the U.S. consumer price index increased to 0.0% in May from -0.2% in April, in line with expectations.

The U.S. consumer price inflation excluding food and energy gained 0.1% in May, missing expectations for a 0.2% increase, after a 0.3% rise in April.

On a yearly basis, the U.S. consumer price index excluding food and energy remained fell to 1.7% in May from 1.8% in April. Analysts had expected the index to remain unchanged at 1.8%.

Gains were limited by the number of initial jobless claims. The number of initial jobless claims in the week ending June 13 in the U.S. declined by 12,000 to 267,000 from 279,000 in the previous week. Analysts had expected the number of initial jobless claims to be 275,000.

June futures for gold on the COMEX today rose to 1201.10 dollars per ounce.