Gold gains in Asian trade after the Federal Reserve held its rates steady at its Wednesday meeting. The rise follows the central bank’s decision to maintain the current policy stance, which typically reduces the opportunity cost of holding nonyielding assets.

ING strategists expect the Fed to continue standing pat instead of raising rates in September, as the jobs market doesn’t appear to be as robust as the unemployment rate suggests, but they acknowledge the decision could be a close one. This outlook supports a more favorable environment for gold in the near term.

A higher-interest-rate environment typically weighs on nonyielding assets like gold. At 0037 GMT, spot gold dropped 0.2% to $4,075.41 a troy ounce, reflecting modest profit-taking after the initial advance.

The Wall Street Journal reported the move, noting that the Fed’s pause comes amid mixed economic signals. Investors will watch upcoming labor data for clues on the next policy step.