Gold Rises as Lower Oil Prices Ease Inflation Concerns
Gold edged up to a one-week high of $4,350 on Friday, posting its first weekly gain in four weeks, as falling oil prices eased concerns over prolonged inflationary pressures. Gains were capped, however, by a stronger dollar, which remained supported after the US Federal Reserve raised rates by 25 bps on Wednesday and signaled further hikes in the coming months. Markets now price in a nearly 60% chance of another rate increase next month. The Bank of Japan also raised rates to a 31-year high, while signaling that further increases remain on the table. Meanwhile, Brent crude fell for a third consecutive session as easing concerns over Saudi supply disruptions outweighed fears of a broader escalation in the Middle East.
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Gold edged up to a one-week high of $4,350 on Friday, posting its first weekly gain in four weeks, as falling oil prices eased concerns over prolonged inflationary pressures. Gains were capped, however, by a stronger dollar, which remained supported after the US Federal Reserve raised rates by 25 bps on Wednesday and signaled further hikes in the coming months. Markets now price in a nearly 60% chance of another rate increase next month. The Bank of Japan also raised rates to a 31-year high, while signaling that further increases remain on the table.
Meanwhile, Brent crude fell for a third consecutive session as easing concerns over Saudi supply disruptions outweighed fears of a broader escalation in the Middle East.