Gold reaches a one-week high amid falling oil prices — Asharq Al-Awsat
The spot price of gold rose for a second consecutive session on Friday and reached a one-week high. As Asharq Al-Awsat reports, as of 08:29 GMT, gold had gained 1.1% to $4,387.69 per ounce.
U.S. gold futures rose 0.6% to $4,428 per ounce. Spot gold was also heading for a weekly gain of about 1%.
Oil and interest rates
Oil prices declined for a third consecutive session as concerns about supply disruptions eased. At the same time, investors were monitoring developments in the Middle East conflict.
Bybit chief market analyst Han Tan said gold had resiliently absorbed hawkish signals from the U.S. Federal Reserve. In his view, the metal was supported by lower oil prices and expectations that the Fed's rate-hiking cycle would be limited.
More current news is available on the UA.News Telegram channel Telegram.
The Fed raised interest rates on Wednesday and indicated the possibility of further increases in the coming months. Higher rates may restrain demand for gold, as they increase the appeal of income-generating assets.
Goldman Sachs expects tighter monetary policy to primarily slow short-term growth in gold prices rather than reduce their ultimate level. The Bank of Japan, for its part, raised rates to a 31-year high and signaled its readiness to continue increasing borrowing costs.
Performance of other metals
Capital Economics economist Hamad Hussein believes that developments in the Middle East conflict will be a key factor for gold prices. In his assessment, if the conflict drags on and oil remains expensive into next year, central banks may raise rates more sharply than investors expect, which would put pressure on gold.
Spot silver rose 2.7% to $66.98 per ounce, platinum gained 2.6% to $1,814.95, and palladium increased 3.1% to $1,330.95. All of these metals were also heading for weekly gains.
