Gold prices continued their upward trend on Thursday from the previous day following the Federal Reserve's announcement that it was done hiking interest rates and that reduced borrowing costs will be seen in 2024.

Spot gold advanced by 0.2% to $2,031.88 per ounce, while gold futures advanced 2% to $2,046.45 per ounce.

In line with expectations, the central bank maintained rate stability and announced that it would likely reduce interest rates by a greater amount in 2024. The bank cited significant progress in restoring inflation within its goal range of 2% annually.

The action caused severe losses in the greenback, which nearly reached a four-month low, as well as considerable speculation about the timing of the Fed's anticipated cutbacks.

The possibility of lower U.S. interest rates increased the appeal of the yellow metal, which gained ground on this transaction and reclaimed the coveted $2,000 per ounce mark.

However, as markets continued to be unsure about precisely when the Fed will start reducing rates, the yellow metal stayed considerably below record highs of almost $2,100 an ounce achieved earlier this month.