Gold price hits daily highs

Gold pared its losses and rose to new daily highs as Federal Reserve Chair Jerome Powell's press conference was deemed not as hawkish by the markets following the central banks' decision to double its tapering pace.

It is "really appropriate" to make this monetary policy shift due to the current state of the U.S. economy, inflation, and wages, Powell told reporters on Wednesday.

"The unemployment rate [is projected] to decline to 3.5% by the end of the year ... while inflation will run above our 2% goal well into next year," he said. "Price increases have now spread to a broader range of goods and services."

Powell clarified that the risk of persistently higher inflation is now greater, which justifies accelerated tapering pace.