Gold prices climbed more than 1% on Thursday after U.S. 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 and make zero-yield bullion less attractive by raising its opportunity cost. Gold, which is also perceived as an inflation hedge, is now up for a third straight session in what could be its best winning streak since mid-April.

Spot gold was up 1.1% at $1,901.56 per ounce, as of 0330 GMT, after rising to its highest since April 29 earlier in the session. U.S. gold futures gained 1.8% to $1,902.00.

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.