The rally in precious metals followed a broader market rebound across North America and Europe, where equities recovered from the volatility triggered by the Fed’s decision to lift the target range to 3.75%–4.00%. While the central bank’s projections for further tightening remain a headwind for bullion, the immediate pressure eased as the 10-year Treasury yield slipped to 4.93% from 5.01%. This shift in the bond market, coupled with a softer U.S. dollar, provided the necessary room for spot gold to test its $4,354 resistance level.

Energy markets also played a central role in the day's price action. Crude oil prices softened as Saudi Arabia signaled progress in rerouting supply through Oman and worked to restore East-West Pipeline capacity. Although WTI settled at $101.91 and Brent at $104.82, geopolitical tensions surrounding the Strait of Hormuz continue to provide a floor for prices. For gold, the outlook remains conditional: while the metal can advance when oil and yields retreat, sustained gains depend on clearing technical hurdles at $4,354 and evidence that inflationary pressures are truly beginning to fade.