Gold Stabilizes Near $4,350 Amid Oil Price Volatility

Gold prices are holding steady near $4,350 amid cautious markets. The precious metal has benefited from a decline in oil prices and US Treasury bond yields, which have capped the US Dollar's (USD) rise despite a hawkish Federal Reserve decision.

The Fed raised interest rates by 25 basis points to 3.75%-4% on Wednesday, with its Dot Plot indicating another rate hike this year. However, oil prices are retreating from four-month highs amid hopes of alternative supply routes from the Middle East. Saudi Arabia is offering extra crude cargoes through Oman, reducing fears of supply disruptions.

The easing of oil price pressures has reduced inflation concerns and weakened US Treasury bond yields, limiting the Greenback's uptrend. However, lingering concerns about strikes between Saudi Arabia and Iran-backed Yemen's militia, Houthis, could lend support to oil prices and put Gold's recovery at risk.