Gold Prices Hold Steady Amid Market Volatility

Gold prices experienced another volatile week as market dynamics shifted in response to various economic indicators. The precious metal's price remained above $4,000 per ounce due to bottom-fishing buying and cooling inflation data.

However, concerns about inflation persisted, fueled by rising oil prices, which limited the recovery momentum of gold prices. Spot gold opened the week at $4,051.51 per ounce on Sunday evening (US Eastern time) and continued to increase on Monday as traders pushed up buying due to weakened prices in the recent range.

The upward momentum slowed down on Tuesday as market participants became cautious ahead of the US Federal Reserve's interest rate decision. Despite some fluctuations, gold prices set a weekly low at $3,995.90 per ounce on Wednesday morning after falling below $4,050 per ounce.

Following the Fed's decision to keep interest rates unchanged, buyers became cautious as traders assessed the latest message and adjusted positions ahead of upcoming inflation data. However, the strongest recovery appeared on Thursday, driven by lower-than-expected personal consumption price index (PCE), which helped ease concerns about potential interest rate hikes.