Gold Price Volatility Continues Amid Cautious Markets
The price of gold remains volatile, struggling to stay above $4,350 amid cautious markets. The metal has recently benefited from a pullback in oil prices and US Treasury bond yields, which capped the strength of the US dollar.
Oil prices are retreating from four-month highs as Saudi Arabia offers extra crude cargoes through Oman, reducing fears of supply disruptions. However, lingering concerns about strikes between Saudi Arabia and Iran-backed Yemen's militia, Houthis, could lend support to oil prices and put gold's recovery at risk.
The US Federal Reserve's (Fed) recent rate hike decision and hawkish monetary policy have also created headwinds for gold's further recovery. The Fed raised its benchmark interest rates by 25 basis points to 3.75%-4%, as widely expected, in a unanimous decision on Wednesday.