Gold Prices Surge on Crude Oil Price Decline and Cooling Yields

Gold prices have surged after a decline in crude oil prices eased inflation concerns. The rally came as Treasury yields cooled down, following the Federal Reserve's decision to raise interest rates by a quarter percentage point on Wednesday.

The price of gold rose up to 2.8% to $4,380 an ounce, ending three consecutive days of losses. Treasury yields had spiked after the Fed's rate hike announcement but retreated later, providing some relief for gold prices.

Christopher Wong, a strategist at Oversea-Chinese Banking Corp., said that the yields are correcting from their overreaction in the previous session, which has helped to support gold prices.

However, Wong also noted that elevated yields and a stronger US dollar may continue to cap gold prices in the near term.