Gold Rallies on Weaker Dollar, Falling Yields After Fed Hike

Gold prices surged 1.83% to $4,341.20 per ounce on Thursday as the dollar weakened and Treasury yields fell in response to the Federal Reserve's rate hike.

The Fed raised rates by 25 basis points to 3.75%-4.00%, with most officials expecting another hike this year, but analysts said the hawkish signals were largely priced in, allowing technical buying and a favorable macro backdrop to drive the recovery.

Oil prices declined for a second day, contributing to cheaper energy and easing near-term inflation concerns, which reinforced the bid in bonds and gold. The S&P 500 rose 1.1% to 7,637.76, while silver jumped 3.54% to $65.202 per ounce.

Despite the strong session, analysts cautioned against reading the move as a full technical reversal, with gold facing resistance at $4,354 and silver needing to clear $65.73 for a confirmed breakout.