Gold Surges to One-Week High Amid Falling Oil Prices and Fed Rate Hikes

Gold prices surged to a one-week high on Friday as market participants remained focused on developments in the Middle East.

Spot gold rose by 0.9% to $4,378.19 an ounce, while US gold futures increased by 0.4% to $4,418.20.

The precious metal's rise comes despite the US Federal Reserve increasing interest rates on Wednesday and projecting more hikes in the coming months.

According to Goldman Sachs, borrowing costs are expected to have a gradual impact on near-term growth rather than affecting gold prices.

Chief market analyst at Bybit, Han Tan, noted that gold has 'taken the Fed's hawkish signals in stride' and is finding relief from falling oil prices amid hopes for a shallow hiking cycle.