Fed Hike Fails to Dampen Gold's Rally as Yields and Dollar Fall

Gold prices rallied by over 2% on Thursday as investors digested the latest Federal Reserve rate hike. The US central bank increased rates by 25 basis points to a range of 3.75%-4%, its first increase in three years, with officials expecting further tightening due to strong economic growth.

The move was accompanied by lower oil prices and falling US yields, which pushed the US Dollar Index down 0.12% to 100.22. This had a positive impact on gold, as it is inversely correlated with the dollar and yields.

Gold's price cleared a key technical resistance level at $4,320, with buyers now targeting $4,400. The Relative Strength Index (RSI) is trending higher but remains below its 50 neutral level, indicating neither buyers nor sellers are in control.