Gold Extends Recovery Amid Declining Oil Prices and Weaker US Dollar

Gold prices rose in European trading on Friday, extending their recovery for a second consecutive day from a six-week low. The metal's price increased by 1.1% to $4,387.14, reaching its highest level since September 11.

The gain was supported by a weaker US dollar and the 10-year US Treasury yield moving further away from its highest level in 19 years. The US Dollar Index fell around 0.1% on Friday, extending losses for a second consecutive session.

Global oil prices continued to decline for a third consecutive day following Saudi comments about restoring the East-West pipeline to operation as soon as possible, alongside Chinese efforts to contain Houthi attacks on Saudi Arabia. Oil prices fell around 0.5% on Friday, moving further away from four-month highs.

The Federal Reserve raised its benchmark interest rate by 25 basis points to a 3.75%-4.00% range on Wednesday, marking the first increase in US interest rates since July 2023. The central bank stressed that inflation remains elevated and that data in recent months have not provided sufficient evidence of improvement in underlying price trends.