Fed Rate Hike Sends Gold Prices Higher Amid Oil Price Volatility
Gold prices rose on Thursday as investors reacted to the U.S. Federal Reserve's interest rate hike, which may lead to further policy tightening. Spot gold was up 0.8% at $4,295.26 per ounce, while U.S. gold futures for December delivery were down 1.2% to $4,333.90.
The Fed raised interest rates on Wednesday and signaled more hikes in the coming months, with new central bank chief Kevin Warsh joining a unanimous decision that acknowledges the Trump administration's inability to control inflation.
Oil prices eased, extending losses on reports of Saudi Arabia offering extra crude cargoes through Oman. Analyst Kelvin Wong said oil prices remain a key factor to watch and that if they continue to decline, it could support gold prices moving higher from a medium-term perspective.