Gold inches lower on firmer dollar

BENGALURU, Nov 08 (Reuters): Gold prices inched lower on Thursday on the back of a stronger dollar as investors digested the US midterm election results and turned their focus to the Federal Reserve's monetary policy decision due later in the day.

The Fed is not expected to raise interest rates until its next gathering in December, however market participants are waiting to see whether it offers clues about possible rate increases in December and in 2019.

Higher US interest rates tend to boost the dollar and also push up bond yields, reducing the appeal of non-yielding bullion.

"Gold has found support around $1,223. If we see good news from the Fed, we may see a bounce. But for now, we think the Fed will continue with the monetary policy tightening," said Benjamin Lu, a commodities analyst with Phillip Futures.

Spot gold was down 0.2 per cent at $1,223.70 per ounce, as of 0410 GMT, while US gold futures fell 0.3 per cent to $1,224.7 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, traded in a narrow range and was last up 0.2 per cent, having touched a more than two-week low in the previous session.