According to CoinMeta, gold rebounded to a one-week high following the Federal Reserve’s first interest rate hike since 2023, aided by factors such as declining oil prices, a weaker U.S. dollar, and falling yields. On Friday, spot gold rose by more than 2%, hitting a new high. The rebound came after initial selling on Wednesday, when gold fell by over 1% due to a 25-basis-point hike in interest rates to 3.75%-4.00%. Oil prices declined for a third consecutive trading day, alleviating concerns about supply disruptions from Saudi Arabia and reducing the impact of high energy costs on inflation. The U.S. dollar weakened during Thursday’s rebound, and Treasury yields also fell from their short-term surge following the rate hike. These changes eliminated the short-term pressure on gold, although the rebound does not mean that the impact of the Federal Reserve has disappeared, as the yield on 10-year Treasuries is still close to the psychological barrier of 5%. Persistently high real yields may once again put pressure on gold, as investors can obtain attractive returns from government bonds without taking on the risk of gold prices.