Gold Defies Rate Hike with Help from China and Oil

Gold rebounded on Thursday after the Federal Reserve raised its target range by 25 basis points to 3.75%-4%, its first increase since 2023.

The decision was heavily anticipated, limiting the element of surprise.

CMC Markets analyst Laurence Booth noted that gold's resilience reflects demand outside the US rates trade, including Chinese ETF inflows and continued central-bank buying.

The more supportive development for gold came from energy markets, as Brent crude extended its retreat towards $105 a barrel after reports that Saudi Arabia was offering additional cargoes through Oman.

A softer oil market reduces inflation-driven rate pressure, improving gold's appeal.