Gold Bounces Back from Rate Hike as Oil Prices Ease

Gold prices rose by nearly one percent on Friday as oil prices eased despite growing concerns about supply shortages, offsetting some of the pressure from a recent rate hike by the Federal Reserve.

The Fed's decision to raise interest rates for the first time in three years was expected to boost the US dollar and put downward pressure on gold, but instead, the yellow metal has rebounded as oil prices declined.

West Texas Intermediate (WTI) crude is trading subdued, capping the greenback's advance, while the US 10-year Treasury yield rose by nearly six basis points to 4.996% following the Fed's rate hike on Wednesday.

The US dollar index (DXY), which measures the performance of the buck against six peers, remains almost flat at 100.29.