Gold Prices Maintained Gains Driven by Fed Decision and Falling Oil
Spot gold held around $4,350 as the Fed's rate move and declining oil prices eased inflation concerns.
After a volatile week in the markets, gold managed to recover its previous losses and preserve its gains, supported by the US Federal Reserve's rate hike and falling energy costs.
Fed Decision and Bond Yields
Following the Fed's decision to raise the policy rate by 25 basis points, US Treasury bond yields declined across all maturities. This eased the pressure on non-yielding gold.
Drop in Oil Prices
As expectations of supply disruptions in the Middle East eased, oil prices declined for the third consecutive day, reducing the pressure of energy costs on inflation.
Critical Levels and Markets
With Thursday's gains, gold moved above the 100-day moving average, which serves as a momentum indicator. Spot gold traded at $4,351.96 per ounce in Singapore.