Spot gold rises over 1% after US Fed rate decision

July 29 (Reuters) - Spot gold prices erased earlier losses to rise more than 1% after the U.S. Federal Reserve held benchmark interest rates steady, dashing expectations for a rate hike and sending the dollar and Treasury yields lower.

"Gold jumps a percent after the Fed holds. There were three dissents, though importantly none from governors. Much will depend on the press conference, but gold, after probing briefly under 4,000, may be out of immediate danger," said Tai Wong, an independent metals trader.

Spot gold XAU= was up 1.2% at $4,076.41 per ounce by 2:16 p.m. EDT.