Gold Rebounds to Weekly High as Wall Street Goes Full Bull

Gold prices rebounded last week after an early selloff driven by surging oil prices, near-5% Treasury yields, and expectations for a Federal Reserve rate hike. Spot gold traded at $4,340 per ounce on Sunday evening, but quickly came under pressure as traders priced in stronger inflation risks from higher crude prices and renewed U.S.-Iran tensions.

The selling accelerated through Monday and Tuesday, with gold dropping to a more than one-month low near $4,279.30 per ounce on Tuesday after the markets treated this week's Fed hike as increasingly locked in. However, gold attempted to stabilize Wednesday ahead of the Fed decision, but the rebound failed after the FOMC voted 12-0 to raise rates by 25 basis points to a 3.75% to 4.00% target range.

The updated projections showed 16 of 18 policymakers still expected another hike before year-end, causing spot gold to fall back and set its weekly low near $4,261.80 per ounce on Wednesday afternoon. However, the yellow metal recovered Thursday as lower crude oil prices, a softer U.S. dollar, and easing Treasury yields helped traders unwind some of the post-Fed pressure.

The rally extended into Friday as oil prices fell for a third straight session and yields moved back from the week's highs, allowing gold to climb to its weekly high of $4,400.60 per ounce. After pulling back from this intraday high, spot gold eased into the weekend trading near $4,377 per ounce, leaving the precious metal positive on the five-day chart.

The latest Kitco News Weekly Gold Survey showed Wall Street going full bull after gold's post-Fed gains, with all 16 experts unanimously expecting gold prices to gain further ground during the week ahead. Main Street investors also bolstered their bullish majority, with 58% of retail traders predicting a rise in gold prices next week.