Gold Hits One-Week High on Easing Oil Prices and Rate Hike Uncertainty
Gold prices rose to a one-week high on Friday as lower oil prices eased concerns about prolonged inflationary pressures. Spot gold reached $4,390.11 per ounce, its highest level since September 11, and was up 1.2% for the day.
The easing of oil prices reduced inflation pressures, according to Chris Gaffney, president of world markets at EverBank. He noted that precious metal investors had expected a rate hike and piled into short positions, but these positions have been rapidly unwound as rates remain steady.
Lower oil prices also contributed to the decline in Brent crude oil prices for a third straight session, outweighed by anxiety about a widening conflict across the Middle East. The dollar rose to a more than seven-week high, making greenback-priced bullion expensive for holders of other currencies.