Gold Bounces Above $4,300 After Fed Rate Hike

The gold price has recovered above $4,300 after a volatile session triggered by the Federal Reserve's rate increase. The Fed voted 12-0 to raise the federal-funds target by 25 basis points to 3.75%-4.00%, citing elevated inflation. The decision sent spot gold plummeting to $4,240.10 by 19:10 UTC, a $125.47 intraday swing from its pre-Fed high of $4,365.57.

However, the precious metal rebounded in Asian trading Thursday, reaching $4,310.49 by 01:49 UTC according to Reuters market data carried by Business Recorder. Despite this recovery, front-month COMEX gold futures remained below their prior settlement, trading at $4,332.40, down $55.10, or 1.26%, from the previous settlement of $4,387.50.

The distinction between a rebound and a reversal matters here, as futures traded between $4,294.50 and $4,356.20 in the new session through that timestamp. A durable recovery would need gold to hold above $4,300 while the dollar and real yields remain firm.

The next session will be crucial, with three key prices to watch: spot support at $4,300, the futures session high of $4,356, and the prior settlement of $4,387.50. Clearing the latter would repair the post-Fed break, while losing the former would leave the Asian rebound as a temporary pause in the repricing.