Gold Prices Rebound as Treasury Yields Cool Following Fed Rate Hike

Gold prices rebounded on Thursday following the Federal Reserve's first interest-rate hike since 2023. The precious metal rose as much as 1.7% to near $4,335 an ounce, after three consecutive days of losses.

The Fed raised rates by a quarter percentage point in a move that was widely anticipated and largely priced in. Treasury yields cooled down from their previous highs, which helped stabilize the market and lift some pressure off gold.

Christopher Wong, strategist at Oversea-Chinese Banking Corp., said that yields are correcting from the overreaction in the previous session, which has supported gold. However, he noted that elevated yields and a firmer US dollar may continue to cap gold's gains in the near term.