The U.S. central bank maintained funds rates unchanged in its monetary meeting on November 1st and hinted it still meant to raise rates in December, as officials counted "solid" economic growth and a tightening labor market.
The Fed left its benchmark interest rates unchanged earlier this month, but did leave the door open for a December rate hike.
Gold prices drifted lower in holiday-thinned trade on Thursday, but losses were capped on speculation the Federal Reserve might not tighten US policy as aggressively as previously thought.
The US Federal Reserve will release minutes of its most recent policy meeting at 19:00 GMT.
Given the solid economic growth, a possible bottoming out in inflation and the potential further Fed repricing in 1H'18 United States real rates should rise in 1Q and 2Q, thus pushing lower gold prices.
That echoed comments from Fed Chair Janet Yellen that she was uncertain about the outlook for inflation and led markets to pare back pricing for more hikes next year. The Russell 2000 index of smaller-company stocks lost 2.13 points, or 0.1 percent, to 1,516.76.
"Investors can be forgiven for wondering why they should buy more USA dollars if we are heading into a "Powell pause" in the first half of 2018", he added, referring to newly appointed Fed Chair Jerome Powell.
When the markets closed, Dow Jones Industrial Average was at 23526, S&P 500 at 2597 and Nasdaq Composite at 6867.
Comex gold futures were up about $2.00, or around 0.2%, to $1,283.53 a troy ounce by 08:00GMT. USA crude fell 15 cents to $57.87 per barrel on New York Mercantile Exchange.
The euro was enjoying the view at $1.1834 EUR= after climbing from $1.1731 on Wednesday. Brent crude LCOc1 dipped 18 cents to $63.14 a barrel.
CURRENCIES: The dollar rose to 111.35 yen from 111.24 yen.