Gold Prices Predicted to Rise Next Week Despite Initial Selling Pressure
Gold prices recovered strongly in the last week of trading, despite initial selling pressure due to rising oil prices and expectations of an interest rate hike by the US Federal Reserve (Fed).
The precious metal opened at $4,340 per ounce on Sunday evening but quickly fell under pressure as traders adjusted their expectations amid rising inflation risks.
Gold prices reached a low of around $4,279.30 on Tuesday before stabilizing in Wednesday's session ahead of the Fed's monetary policy decision.
The Federal Open Market Committee (FOMC) unanimously voted to raise interest rates by 0.25 percentage points, bringing the target interest rate margin to 3.75-4%.
However, after the Fed meeting, gold prices regained momentum as crude oil prices fell and US Treasury bond yields cooled down, helping investors reduce selling pressure.
The upward momentum continued in the last session of the week, with gold prices rising to their highest level at $4,400.60 on Friday.