Gold Prices Surge to One-Week High on Easing Crude Oil Prices

Gold prices rose to a one-week high on Friday as crude oil prices eased, leading to reduced concerns over prolonged inflationary pressures. The decline in oil prices improved the broader macroeconomic backdrop for precious metals by limiting upward pressure on interest rates.

The Federal Reserve's first interest-rate increase since 2023 and a recent rise in Treasury yields did not deter gold prices from holding firm. This resilience suggests that much of the expected policy tightening had already been priced into the market.

Physical demand for gold was mixed, with Indian buyers remaining cautious due to higher prices and Chinese premiums staying steady, supported by continued investment demand.