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Gold prices pulled back on Thursday after rising as much as 1% following the half-a-point interest rate hike announced by the US Federal Reserve, the biggest in 22 years.

Spot gold slipped 0.2% to $1,876.52 per ounce by 12:30 p.m. ET, having earlier hit its highest since April 29. US gold futures gained a modest 0.3% to $1,875.00 per ounce in New York.

[Click here for an interactive chart of gold prices]

“I don’t think a whole lot changed in overall Fed policy from yesterday’s meeting, but it just gave gold and silver traders an excuse to rally the market after the recent strong selling pressure,” Kitco senior analyst Jim Wycoff, told Reuters.

“The whole scenario in Europe with its energy supplies being constrained having banned some energy imports from Russia, that’s leading to instability in the European marketplace, that’s prompting safe haven demand for gold, prompting higher inflation in the eurozone,” Wycoff added.

Gold’s reversal comes amid another rally in the dollar index, which typically hurts appeal for bullion among overseas buyers, as well as the benchmark US 10-year Treasury yields.

“Bond yields will continue rising because of expectations that monetary policy from the Fed and other major central banks will be tightened further … This is going to hold gold back from going too high in the medium term,” added Fawad Razaqzada, market analyst at City Index.

(With files from Reuters)