Investing.com — prices rose on Friday as lower oil prices and falling Treasury yields eased inflation concerns, helping bullion recover after the Federal Reserve raised interest rates earlier this week.
The rebound has kept gold on course to finish a volatile week higher, although expectations for further Fed hikes remain a headwind.
At 21:28 ET (01:28 GMT), rose 0.5% to $4,361.31 an ounce, while Gold Futures were little changed at $4,399.87. gained 1% to $65.88 an ounce, while rose 1% to $1,790.41. The was little changed at 100.22.
Lower oil, yields ease pressure after Fed hike
Gold has recovered much of the loss from the previous three sessions after rising almost 2% on Thursday.
Treasury yields have since declined across maturities after surging following the Fed’s unanimous decision to raise interest rates by 25 basis points on Wednesday.
That pullback in yields has reduced some of the pressure on gold because bullion does not pay interest.
Oil prices fell for a third straight day as the outlook for supply disruptions in the Middle East improved.
Saudi Arabia has said it expects to restore flows through a key pipeline within days, while some tankers have continued moving through the contested Strait of Hormuz.
The easing energy pressures have offered some relief on inflation.
Still, Fed Chair Kevin Warsh’s comments on inflation have pushed markets to expect at least one more rate increase this year and as many as two additional hikes in 2027, keeping the longer-term policy outlook challenging for bullion.
Gold regains momentum as ETF demand strengthens
Thursday’s rebound pushed gold back above its 100-day moving average, an indicator often used to assess market momentum.
Even after the recovery, the metal remains nearly 20% below levels seen before the Iran war began in late February.
Investors have continued increasing their exposure to bullion, betting that its longer-term drivers will remain intact.
Gold-backed ETFs tracked by Bloomberg have recorded billions of dollars in inflows, while ANZ said holdings in those funds have increased for eight consecutive sessions.
ANZ anlaysts pointed to strong demand for options on some of the largest gold-backed ETFs, suggesting investors remain active despite expectations for tighter monetary policy.