Gold prices rose on Thursday even as the dollar gained ground against major rivals, with haven demand boosting gold amid uncertainty and concerns about global monetary policies. 

As expected the Federal Reserve hiked interest rates by 75 basis points for the third meeting in a row to 3.25%, the highest since 2008.

The Fed also expects US GDP growth to slow down to just 0.2% this year, down from 1.7% in previous forecasts. 

The Fed also expects unemployment to rise to 4.4% by 2023, up from 3.7% currently. 

Separately,  Bank of England hiked interest rates by 50 basis points today, while other central banks in the Arab Gulf region, Switzerland, Philippines, and others, took similar measures. 

Earlier US data showed unemployment claims rose to 213 thousand last week, beating estimates of 218 thousand.

The dollar index rose 0.5% as of 16:57 GMT to 111.2, with a session-high at 111.8, and a low at 110.4. 

Gold spot prices rose 0.4% as of 16:58 GMT to $1,682 an ounce. 

US unemployment claims fell to 213 thousand in the week ending September 17, beating estimates of 220 thousand, and down from 215 thousand in the previous reading. 

Dollar rose in European trade against a basket of major rivals for the third straight session, hitting fresh 20-year highs after the Federal Reserve's policy decisions. 

The Federal Reserve hiked interest rates by 75 basis points for the third meeting in a row to 3.25%, the highest since 2008.

The Index

The dollar index rose over 0.3% to 111.81, the highest since June 2002, after rising 1.05% yesterday on haven demand after Russian President Vladimir Putin announced partial military mobilisation, and following the Fed's meeting. 

The Federal Reserve 

As expected the Federal Reserve hiked interest rates by 75 basis points for the third meeting in a row to 3.25%, the highest since 2008.

The Fed intends to maintain its bullish stance against inflation, raising rates to 4.5% by the end of the year, which means we have 125 basis points of rate hikes in the last two meetings of the yer.

The Fed is aiming for the neutral 4.75% level for interest rates, which means raising rates by just 25 basis points in 2023.

Jerome Powell

Fed Chair Jerome Powell said his message hasn't change since Jackson Hall, with the Federal Open Market Committee aiming to cut inflation 2% through aggressive policy tightening until it's done. 

The Bank of England revealed the vote count for the September 22 meeting, at which all nine members voted to increase interest rates by 50 basis points to 2.25% as expected.