Gold and Silver Roar Back as Fed Shock Fades

The precious metals market experienced a significant rebound on Friday as gold and silver prices surged following the Federal Reserve's rate hike. Spot gold climbed about 0.7% to $4,372 an ounce, while silver jumped more than 2% to roughly $66.70.

This marked a dramatic reversal from Wednesday's post-Fed selling, when investors had initially taken a bearish stance on precious metals due to the rate hike. However, falling oil prices and retreating Treasury yields helped fuel the rebound, with the benchmark 10-year yield slipping back toward 4.94%.

The Strait of Hormuz remains a significant wildcard for bullion markets, as Iran's attack on a tanker in the strategic waterway continues to pose a risk to global oil supplies. This has created an unusual setup for gold, with lower oil reducing inflation pressure and giving bond yields room to retreat.