Gold Defies Rate Hike with Surprising Weekly Gain

Gold prices have shown surprising resilience in the face of the Federal Reserve's interest rate hike, rising by 0.4% for the week and 0.6% on Friday alone.

This comes as investors increasingly focus on structural forces supporting gold, including deteriorating government finances, persistent inflation, geopolitical uncertainty, and changing global reserve allocations.

'Gold's resilience is notable given that the Fed has just begun a new hiking cycle and the dollar remains relatively firm,' Saxo Bank Head of Commodity Strategy Ole Hansen noted, adding that gold-backed ETF holdings have climbed to a seven-month high.

The rally may be poised to gain traction as gold and silver 'are once again holding key support levels', according to Spartan Capital's Peter Cardillo.