Gold Surges as Oil Price Slide Deepens Amid Interest Rate Hike

Spot gold prices surged by 2.3% to $4,360.92 an ounce on September 17th as US Treasury yields cooled following the Federal Reserve's decision to raise interest rates by a quarter percentage point.

The rate hike had been widely anticipated, with investors already pricing in the increase due to rising energy prices and inflationary pressure caused by the war in the Middle East.

A slump in oil prices, which slid from its recent highs on signs that supply disruptions are easing, also contributed to the rally in gold.

Gold-backed exchange-traded funds (ETFs) have seen inflows for eight consecutive days, with investors flocking to bullion amid concerns about inflation.