Gold Prices Rebound Above $4,300 Amid Softer Dollar and Lower Oil

Gold prices rose above $4,300 per ounce in Asian trading on Friday, extending the previous day's rebound and defying expectations of a Federal Reserve rate hike. The precious metal benefited from a softer U.S. dollar and declining oil prices, which eased inflation pressures.

The Federal Reserve raised interest rates by 25 basis points on Wednesday, but U.S. Treasury yields initially spiked before pulling back the next day. Christopher Wong, a strategist at OCBC Bank, noted that Treasury yields are correcting their 'overreaction' from the previous trading session, providing support for gold.

Oil prices fell for a third consecutive trading day, with concerns over Middle East supply disruptions subsiding as Saudi Arabia indicated it would restore critical pipeline flows within days. David Meger, director of precious metals trading at High Ridge Futures, said 'gold prices are moving inversely to energy prices.'

Investor appetite for gold remains strong, with gold ETFs seeing inflows for eight consecutive trading sessions and cumulative inflows reaching billions of dollars.