Gold prices climbed more than 1% on Thursday after US Federal Reserve Chair Jerome Powell ruled out large, aggressive interest rate hikes for the year as the central bank seeks to contain inflation without triggering an economic recession.

Rate hikes tend to lift bond yields, raising the opportunity cost of holding zero-yield bullion. Gold, which is also perceived as an inflation hedge, is now up for a third straight session in what could be its longest winning streak since mid-April.

Spot gold was up 1% at $1,900.38 per ounce, as of 0548 GMT, after rising to its highest since April 29 earlier in the session. US gold futures gained 1.8% to $1,901.90.

Gold prices subdued as investors look to Fed rate decision

Market participants are cutting hawkish bets and that’s been a catalyst for gold’s rise, along with the possibility of inflation leaking through as the Fed is not fighting it as hard as expected, trading firm City Index’s senior market analyst Matt Simpson said.

“With the Fed (meet) behind us … it does allow gold to shine again in the risk-off environment, which is otherwise known as the Ukraine-Russia confrontation,” Simpson said.

The Fed on Wednesday raised its benchmark overnight interest rate by a widely expected half-a-percentage point, the biggest hike in 22 years, as it seeks to tighten pandemic-era monetary policy.

However, Powell explicitly ruled out raising rates by three-quarters of a percentage point at upcoming monetary policy meetings, driving US Treasury yields and the dollar sharply lower, and supporting gold.

The dollar was holding steady near a one-week low, making the greenback-priced gold more attractive for overseas buyers.

Spot silver climbed 0.8% to $23.15 per ounce, platinum advanced 0.9% to $999.68, and palladium gained 0.7% to $2,270.79