Precious-Gold extends gains to scale one-week high as crude prices ease
GLD•Other precious metals also advance
"Looking ahead, the state of the conflict in the Middle East will be a key factor influencing gold prices. If the conflict prolongs and oil prices remain high well into next year, that could prompt central banks to raise rates more than investors expect, which would put downward pressure on gold prices," said Hamad Hussain, a climate and commodities economist at Capital Economics.
Spot silver XAG= rose 2.7% to $66.98, platinum XPT= gained 2.6% to $1,814.95 and palladium XPD= added 3.1% at $1,330.95. All metals were headed for a weekly gain.
Gold rises on weaker oil and Middle East concerns
Gold rose for a second straight session on Friday, hitting a one-week high, as oil prices fell, while investors kept a close watch on developments in the Middle East conflict.
Spot gold XAU= was up 1.1% at $4,387.69 per ounce by 0829 GMT, and was on track for a weekly gain of 1%.
US gold futures GCcv1 rose 0.6% to $4,428.
Oil weakness and central bank signals support precious metals
Oil prices fell for a third straight session, as easing concerns over Saudi supply disruptions outweighed anxiety about a widening Middle East conflict. O/R
"The precious metal appears to have taken the Fed's hawkish signals in stride, instead finding immediate relief from falling oil prices amid hopes that the Fed's hiking cycle will prove shallow," said Han Tan, chief market analyst at Bybit.
Although gold is traditionally viewed as a hedge against inflation, higher rates can curb its demand by increasing the appeal of yield-bearing assets.
The US Federal Reserve raised interest rates on Wednesday and flagged more hikes in the coming months.
