Gold Prices Rally on Slumping Oil, Lower Treasury Yields

Gold prices surged to a high of $4,380 an ounce, up 2.8% from the previous day, as investors sought safety in bullion following a decline in oil prices.

The recovery in gold was also driven by a decrease in Treasury yields, which had spiked after the Federal Reserve's interest-rate hike on Wednesday.

Christopher Wong, a strategist at Oversea-Chinese Banking Corp., attributed the correction in yields to an overreaction in the previous session, saying it has helped support gold.

Giovanni Staunovo, a strategist at UBS Group AG, noted that the Fed's decision to raise rates and its signal that rates will remain higher for longer remains a near-term headwind for gold.