Gold Price Rebounds Above $4,340 as Lower Oil Eases Rate Pressure
The gold price rebounded above $4,340 on Thursday as lower oil prices and easing Treasury yields eased rate pressure. Spot gold was trading near $4,341.20 an ounce, up 1.83%, while spot silver was trading at $65.12, up 3.59% on the session.
The move came after the Federal Reserve's first rate hike in more than three years, which kept the medium-term rate backdrop restrictive for gold. However, lower oil and a retreat in Treasury yields changed the day's trade, with the 10-year yield falling to 4.93% from 5.01% late Wednesday.
The Strait of Hormuz remains the main geopolitical channel into oil, inflation expectations, and defensive demand, but Thursday's market impact came through easing supply fears. Oil fell for a second straight session as Saudi Arabia worked to move additional crude through Oman and investors assessed a faster restoration of East-West Pipeline capacity.