NEW DELHI: Gold and silver were trading over 0.50 per cent down in early trade on Thursday after the Federal Reserve increased interest rates but was less dovish than expected following a two-day meeting.MCX Gold was down 0.57 per cent, or Rs 165, at Rs 28865 per 10 gram around 10.30 am (IST), while MCX Silver was also trading down by 0.84 per cent, or Rs 330, at Rs 39,088 per 1 kg.It was the second time in three months that the Fed raised interest rates by a quarter percentage point , which was widely expected, and the US central bank cited continued economic growth and job market strength. It also announced it would begin cutting its holdings of bonds and other securities this year.On the further movement of the yellow metal, Angel Commodities said, “We expect gold prices to trade sideways on Thursday as the widely expected rate hike by the US FED is done with. Fresh set of factors coming from UK will have its own effect on precious metals in the near term.”However, SMC Investments and Advisors in a research note said, “Bullion counter may trade on volatile path as US Initial jobless claim data and movement of greenback to give further direction to the prices. Meanwhile movement of rupee can also affect the domestic prices. Gold can move in range of Rs 28700-29200 while silver can move in range of Rs 38600-39500 in near term.”SPDR Gold Trust GLD, the world’s largest gold-backed exchange-traded fund, said its latest holdings stood at 867 tonnes, remain unchanged from previous business day.Latest holdings of the largest silver-backed exchange-traded-fund (ETF), New York's iShares Silver Trust SLV, stood at 10562.91 tonnes, remain unchanged from previous business day.