Gold Surges on Falling Oil Prices Amid Middle East Tensions
Gold prices have reached their highest level in about a week, rising by 0.9% to $4,378.19 an ounce at 0829 GMT on Friday. Meanwhile, oil prices fell for a third consecutive session due to easing Saudi supply anxieties and concerns over a widening Middle East conflict.
The precious metal's surge is seen as a response to falling oil prices, which has alleviated some of the inflationary pressures that have been driving gold's appeal in recent months. According to Goldman Sachs, borrowing costs are expected to be felt mainly through a gradual near-term growth trajectory rather than a lower terminal gold price.
Chief market analyst at Bybit, Han Tan, noted that gold has taken the Federal Reserve's hawkish signals 'in stride', finding immediate relief from falling oil prices amid hopes that the Fed's hiking cycle will prove shallow.