Gold Prices Hit One-Week High as Oil Prices Continue Downward Trend

Gold prices rose for a second straight session on Friday, reaching a one-week high. This movement comes as oil prices fell for a third consecutive day, with concerns over Saudi supply disruptions outweighing anxiety about the Middle East conflict.

The spot price of gold increased by 1.1% to $4,387.69 per ounce and is on track for a weekly gain of 1%. US gold futures also rose 0.6% to $4,428.

Despite gold's traditional role as a hedge against inflation, higher interest rates can curb its demand by making yield-bearing assets more appealing. The US Federal Reserve raised interest rates on Wednesday and signaled further hikes in the coming months.