Gold climbed to a one-week high after the Federal Reserve delivered a widely expected 25-basis-point rate hike, taking the benchmark rate to 3.75%–4.00% and signaling that additional tightening remains possible. In the latest session, bullion gained 2.29%, running from $4,285.8 to an intraday high of $4,380.5 before easing slightly to around $4,369.
The rebound followed an initial post-Fed selloff on Wednesday, when spot gold dropped more than 1%. Traders had positioned for the hike ahead of the announcement, and once the decision arrived, the bearish trade lost its main catalyst. Market analyst Brien Lundin compared the setup to late 2015, when gold also rallied after a widely anticipated Fed hike.
Several macro forces reinforced the move. Crude prices fell for a third consecutive session as concerns over Saudi supply disruptions eased, reducing fears that expensive energy would keep inflation elevated and force a longer tightening cycle. The dollar weakened and Treasury yields retreated from their immediate post-Fed spike, removing key short-term headwinds for gold.
Central bank demand was another major factor. Research using IMF and U.S. Treasury data shows global official gold holdings have climbed to about $4.7 trillion, compared with roughly $3.7 trillion in foreign official Treasury holdings. That marks the first time since 1996 that gold has overtaken Treasuries in central bank reserves. Gold holdings grew from around $1.5 trillion in 2020 to $4.7 trillion, while Treasury holdings fell from about $4.0 trillion to $3.7 trillion.
Technically, buyers remained in control. The first resistance stands at $4,380.5, followed by $4,400, $4,420 and $4,440. Support is located near $4,360, then $4,340 and $4,320, with the $4,300 area serving as an important psychological level. However, the 10-year Treasury yield remains near the psychologically important 5% level, and persistently high real yields could still pressure gold because investors can earn attractive returns from government bonds without taking bullion price risk.
