Gold reversed losses after Federal Reserve Chair Jerome Powell explained the central bank’s reasoning for hiking interest rates on Wednesday.
Spot gold initially fell after the Fed increased interest rates by 75 basis points for the third time in a row. The central bank also indicated it will continue hiking above the current level.
Spot gold was last up 0.6% at 1,673.69 per ounce and U.S. gold futures rose 0.66% to 1,682.2.
Gold is considered a hedge against inflation and geopolitical risks but rising rates increase the opportunity cost of holding non-yielding bullion.
Earlier in the day, the metal was up after Russian President Vladimir Putin’s move to mobilize more troops over the conflict in Ukraine drew investors to the safe-haven asset, offsetting pressure from a firmer dollar and expected U.S. rate hikes.
Spot silver jumped 1.55% to $19.6097 per ounce, while platinum fell 1.39% to $909.38. Palladium declined 1.2% to $2,141.88.