Gold Edges Up as Lower Oil Prices and Weaker Dollar Offset Fed Hike

Gold prices rose slightly on Friday as lower oil prices and a subdued US dollar provided support. Spot gold increased by 0.3% to $4,352.60 per ounce, while US gold futures for December delivery were down 0.2% at $4,391.60.

The weaker dollar made greenback-priced commodities less expensive for holders of other currencies. Despite the Federal Reserve's interest rate hike on Wednesday, Goldman Sachs maintained its end-2027 gold price forecast at $5,400 per troy ounce.

Goldman Sachs believes that tighter policy may slow down bullion's rally but not derail it. The Bank of England kept interest rates on hold on Thursday, while the Bank of Japan is set to raise rates to a 31-year high on Friday and pledge to deliver more to counter inflation risks.