Gold Surges as Oil Price Slide Eases Inflation Concerns

Gold prices surged on Thursday, rising as much as 2.8% to exceed $4,380 an ounce, as the oil price slide deepened and eased concerns about inflation.

The rally came after the Federal Reserve's first interest-rate hike since 2023, which was widely expected but still sent shockwaves through markets.

Treasury yields cooled following the Fed's decision, helping to lift pressure on gold. Christopher Wong, a strategist at Oversea-Chinese Banking Corp., noted that yields 'are correcting from the overreaction' in the previous session.

Oil prices slid as signs emerged that supply disruptions in the Middle East may be easing, with Saudi Arabia seeking to partially restore flows along a vital pipeline.