(Sept 18): Gold held a gain at the end of a volatile week as the US Federal Reserve’s (Fed) first interest-rate hike since 2023 and lower oil prices helped ease concerns about inflation.

Bullion was trading around US$4,350 (RM17,789) an ounce on Friday, after gaining almost 2% on Thursday to erase much of the loss from the previous three sessions. Treasury yields declined across maturities, after spiking in the wake of the Fed’s unanimous decision on Wednesday to raise rates by a quarter percentage point. That shift lifted some pressure on gold, which typically underperforms when bond yields are higher because it doesn’t pay interest. 

Oil declined for a third day as supply disruptions in the Middle East looked set to ease, relieving energy cost pressures on inflation. Saudi Arabia has moved to restore flows along a vital pipeline within days, while some tankers have continued to traverse the contested Strait of Hormuz. 

Thursday’s rebound has taken gold back above the 100-day moving average, a measure of momentum. Even so, it’s still nearly a fifth below levels before the Iran war began in late February.

Investors have been flocking to bullion in recent weeks, betting that the long-term drivers of the metal will endure. Gold-backed exchange-traded funds tracked by Bloomberg have seen inflows even as prices fell. 

Still, Fed chairman Kevin Warsh’s rhetoric on inflation drove up market expectations for at least one more increase this year and up to another two in 2027, which present potential headwinds for bullion. 

Spot gold rose 0.2% to US$4,351.96 an ounce at 8.12am in Singapore on Friday. Silver advanced 0.4% to US$65.51 an ounce, after surging 3.6% the day before. Platinum and palladium edged higher. The Bloomberg Dollar Spot Index, a gauge of the US currency, was little changed after falling 0.1% the previous session.

Uploaded by Tham Yek Lee