Gold Rebounds as Oil Prices Retreat, Offsetting Fed Rate Hike

Gold (XAU/USD) has regained its footing as oil prices retreated, offsetting some of the impact from last week's Federal Reserve rate hike. Despite concerns over supply shortages and a nearly two-month low of $4,235, gold extended its gains on Friday by 0.89%, reaching $4,379.

The yellow metal remains bid due to softer crude prices, which have capped the Greenback's advance. The US Dollar Index (DXY) is almost flat at 100.29, while the US 10-year Treasury yield has increased nearly six basis points to 4.996%.

The Federal Reserve's rate hike on Wednesday was justified by Fed Chair Kevin Warsh, who stated that the economy remains strong and requires achieving a 2% inflation goal. The dot plot in the Fed's projection materials showed most officials expect at least one more rate hike.