Gold prices pulled back from their highs of the day after the Federal Reserve opted for one of the sharpest U.S. rate hikes since 1994.
U.S. gold futures gained 0.3% to $1,819.
Uncertainty regarding the outcome of Wednesday's FOMC meeting had prompted some buying interest in safe-haven metals, said Jim Wyckoff, senior analyst at Kitco Metals.
Although gold is considered a hedge against inflation, rate hikes increase the opportunity cost of holding non-yielding bullion.
With markets participants nearly fully pricing in two consecutive 75 basis point hikes, "gold and risk markets alike could be set up for a short-squeeze," TD Securities said in a note.
Investors also took stock of data showing an unexpected fall in U.S. retail sales in May amid record high gasoline prices.
Meanwhile, Goldman Sachs said a "wealth shock" due to lockdowns in China merely delayed rather than derailed its upside view for bullion.
A rebound in emerging market demand, strong ETF inflows, central bank buying amid U.S. growth weakness into 2023 all augur well for gold, the bank said, projecting a three-month price target of $2,100 an ounce.
Spot silver rose 1.8% to $21.46 per ounce, while platinum was up 1.3% to $932.60. Palladium was 1.8% higher at $1,847.84 per ounce.