Gold Gains on Weak Dollar and Inflation Fears
The rise in gold prices was supported by a decline in the dollar and ongoing declines in oil prices, despite the Federal Reserve raising interest rates to a range of 3.75% to 4%, the highest level in three years, amid continued inflation concerns. Spot gold increased by 0.9%, reaching $4,379.59 per ounce, while futures rose by 0.4% to $4,417.84, with limited weekly gains. Oil prices have declined for three consecutive days due to improved supply outlooks amid potential diplomatic efforts between the United States and Iran, as well as Saudi Arabia's attempts to restore its export capacity after pipeline attacks, which reduce the risk of supply shortages. Meanwhile, US Treasury bond yields have risen to around 5%, the highest in 19 years. Despite the rate hike, worries about inflation persist, especially in the energy sector, with forecasts suggesting that it may take years for inflation to stabilize at 2%.
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