Gold climbed above $4,300 an ounce on Thursday, recovering from a roughly 2% decline over the prior three sessions after the Federal Reserve delivered its first interest-rate increase in three years.
As of 21:44 ET (01:44 GMT), spot gold (XAU/USD) was up 1.1% at $4,311.01 per ounce. Gold futures fell 0.9% to $4,348.75. The US Dollar Index held near flat at 100.35.
Other precious metals also posted gains. Spot silver (XAG/USD) rose 1.4% to $63.89 per ounce, and platinum (XPT/USD) advanced 1.5% to $1,782.18 per ounce.
The Federal Open Market Committee unanimously raised the federal funds rate by 25 basis points on Wednesday, marking the first increase since 2023. The committee's median projection for the policy rate at the end of 2026 rose to 4.1%, up from the previous estimate of 3.8%.
Fed Chair Kevin Warsh reinforced the central bank's inflation concerns during his post-meeting briefing, saying that "too many categories of goods and services were still recording annualized price increases above 3% over both six-month and 12-month periods."
Tony Sycamore, senior market analyst at IG, noted that expectations for another Fed rate hike later this year — along with projected additional increases totaling 50 basis points in the first half of 2027 — had intensified headwinds facing gold.
From a technical standpoint, Sycamore said gold needs to reclaim its 200-day moving average near $4,539 to signal that the pullback from its $4,697 high has ended and the broader uptrend has resumed. He added the current decline could extend toward $4,200, with $4,000 identified as the next major support area.
