The U.S. dollar rose slightly on Friday after falling to one-month lows in the wake of the Federal Reserve's decision to raise interest rates.
The pan-European STOXX 600 index rose 0.7 percent and touched its highest level since December 2015, helped by the Fed's dovish tone and the Dutch election results.
The greenback weakened broadly after the Fed's policy statement was seen as less hawkish than expected on Wednesday, by sticking to projections of three total rate hikes in 2017 and not four as some traders had hoped for. Investors had widely expected the rate increase.
Spot gold had edged up 0.5 percent to $1,200.93 per ounce by 1040 GMT while USA gold futures rose 0.1 percent to $1,200.90 per ounce.
The euro, meanwhile, fell against the dollar after a poll showed far-right anti-EU leader Marine Le Pen extending her lead over centrist Emmanuel Macron in the first round of France's presidential elections. Minutes from the Bank's latest Monetary Policy Committee meeting shocked markets on Thursday by showing one outgoing official voting for a rise in rates, and others on the verge of doing so if inflation gets much higher.
The Federal Reserve this morning raised its benchmark interest rate a quarter of a percent from 0.75% to 1.00%. The 0.6 percent gain beat expectations for a 0.2 percent decline, while sales volumes were also solid, rising 0.7 percent.
Commodities The oil market is striving to break a six day losing streak that saw Brent crude prices slump 9.1 per cent amid concerns that Saudi Arabia was not adhering to an Opec production cut deal and that increasing output by USA drillers was adding to a glut.
Junior companies in the Gold sector will more than likely start seeing some major traction in the near future, especially considering that Fed officials signalled only two more rate hikes this year, below what most economist had been predicting, which sent U.S. government bond yields lower and hurt the dollar. Platinum was up 0.8 percent at $939.60 while palladium added 0.2 percent to reach $745.50.
Elsewhere, GBP/USD rose 0.25% to 1.2389, off Wednesday's two-week peak of 1.2309.
Prices on benchmark 10-year Treasuries US10YT-RR fell 8/32 to yield 2.531 percent, up from 2.504 percent late on Wednesday.
Global benchmark Brent added nearly 0.1 per cent to $51.77 a barrel, and was headed for a 0.8 per cent weekly gain. Spot gold XAU= was up 1.6 percent at $1,217.81 an ounce by 3:01 p.m. EDT (1901 GMT), after rising to $1,219.36, the highest since March 7.
April Comex Gold futures are holding steady on extremely low volume early Friday after holding on to gains produced by the Fed's decision not to increase the pace of monetary tightening after its two-day monetary policy meeting concluded on Wednesday.