Gold Hits One-Week High as Oil Prices Decline Amid Middle East Tensions
Gold prices rose for the second consecutive session on Friday, reaching a one-week high as oil prices declined. Spot gold gained 1.1% to $4,387.69 per ounce by 0829 GMT and is on track for a weekly gain of 1%. US gold futures increased 0.6% to $4,428.
Han Tan, chief market analyst at Bybit, attributed the precious metal's performance to falling oil prices amid easing concerns over supply disruptions in the Middle East conflict. However, he noted that higher interest rates can curb demand for gold by increasing the appeal of yield-bearing assets.
The US Federal Reserve raised interest rates on Wednesday and signaled further hikes in the coming months, which may impact gold prices. Goldman Sachs predicted that tighter monetary policy will primarily affect gold's near-term appreciation path rather than its terminal price.