FX.co ★ Gold Rises as Lower Oil Prices Ease Inflation Concerns

Gold climbed to a one-week high of $4,350 on Friday, marking its first weekly advance in four weeks, as declining oil prices helped ease worries about persistent inflationary pressures. Upside momentum was limited, however, by a stronger US dollar, which remained supported after the Federal Reserve raised interest rates by 25 basis points on Wednesday and signaled the likelihood of further tightening in the months ahead. Markets are now pricing in nearly a 60% probability of another rate hike next month. The Bank of Japan also lifted rates to a 31-year high, while indicating that additional increases remain possible. At the same time, Brent crude fell for a third straight session, as receding concerns over potential supply disruptions from Saudi Arabia offset fears of a broader escalation in the Middle East.