Gold Prices Rebound Amid Weaker US Dollar and Falling Oil Costs
Gold prices rebounded to near $4,350 on Friday during the early Asian session as the US Dollar weakened and crude oil prices dropped to a one-week low.
The precious metal recovered from its six-week low amid falling energy costs and eased inflation concerns. Traders are still assessing the latest Federal Reserve rate hike and policy cues.
US President Donald Trump is expected to meet Gulf leaders next Tuesday to discuss the next steps in the Iran war, which has reduced tensions and provided some support to gold.
However, further US interest rate hikes could weigh on gold prices as higher interest rates typically reduce demand for non-yielding assets like gold. The Fed raised interest rates by 25 basis points this week, and traders now price in nearly a 53.1% chance of another rate hike in October.