Gold futures on the COMEX division of the New York Mercantile Exchange closed higher on Thursday, in the wake of monetary policy decisions by the Federal Reserve.

The most active gold contract for August delivery went up 7 dollars, or 0.54 percent, to close at 1,308.3 dollars per ounce.

The Fed on Wednesday indicated that it will likely raise interest rates more aggressively in 2018 than previously signaled. Its decision came after regular trading in gold futures had ended.

Higher interest rates lift the appeal of holding dollars, which will cut the worth of holding non-yielding gold.

Gold gained somewhat on geopolitical tensions, as local media reported that U.S. President Donald Trump could slap China with tariffs as early as Friday. The report also mentioned such a move would surely inflame trade tensions and spark an almost immediate retaliation.

However, stronger greenback exerted pressure on gold. The U.S. dollar index, which measures the buck against six rivals, went up 1.32 percent to 94.783 as of 2000 GMT .

Gold and the dollar typically move in opposite directions, which means if the dollar goes up, gold futures will fall.

As for other precious metals, silver for July delivery added 27.1 cents, or 1.59 percent, to settle at 17.262 dollars per ounce. Platinum for July went up 8.4 dollars, or 0.93 percent, to close at 910.9 dollars per ounce.