Gold Prices Rebound as Saudi Pipeline News Eases Oil Market Fears
The price of gold rebounded on Thursday as concerns over inflation eased following news that Saudi Arabia is working to restore its East-West oil pipeline. The move aims to cool crude prices, which had been stoking fears of higher inflation and potential disruptions to global supply chains.
According to US Energy Secretary Chris Wright, around half of the pipeline's capacity will be restored within days, with full operation expected in six weeks. This is seen as a positive development for the oil market, with 18 million barrels of crude oil and petroleum products having passed through the Strait of Hormuz earlier in the week.
The rebound in gold prices comes after losses in the previous session. The yellow metal climbed 1.1% to $4,308.80 per ounce by 0950GMT, while silver gained 1.2% to $63.97 per ounce. Gold's annual advance now stands at over 18%, while silver has risen almost 53%.
The move also comes as the US Federal Reserve raised its federal funds target range by 25 basis points to 3.75%-4%. Fed Chair Kevin Warsh stated that inflation remains elevated, referencing figures released last week showing core US inflation rose more than expected in August.