<\/p>\n
Gold rallied alongside Treasuries as a slump in oil prices helped ease concerns about inflation, following the Federal Reserve\u2019s first interest-rate hike since 2023.<\/p>\n
Bullion rose as much as 2.8%, touching $4 380 an ounce, after three consecutive days of losses. Treasury yields cooled, after spiking in the wake of the Fed\u2019s unanimous decision on Wednesday to raise rates by a quarter percentage point. The retreat lifted some pressure on gold, which usually performs worse when bond yields are high because it doesn\u2019t pay interest.<\/p>\n
Yields \u201care correcting from the overreaction\u201d in the previous session, said Christopher Wong, strategist at Oversea-Chinese Banking Corp. That in turn has helped to support gold, he said, although \u201celevated yields and a firmer US dollar may continue to cap gold in the near term.\u201d<\/p>\n
The Fed rate hike had been widely anticipated \u2014 and largely priced in \u2014 as rising energy prices due to the war in the Middle East added to inflationary pressure. Data released last week showed core US inflation rose at a hotter-than-expected pace in August.<\/p>\n
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But oil slid from its recent highs on signs that supply disruptions in the Middle East are set to ease, with Saudi Arabia seeking to partially restore flows along a vital pipeline.<\/p>\n
Meanwhile, investors have continued to flock to bullion via gold-backed exchange-traded funds. ETFs tracked by Bloomberg have seen inflows for eight consecutive days.<\/p>\n<\/p>\n
Demand for options on some of the largest gold-backed ETFs has been similarly strong. The largest such fund, SPDR Gold Shares, recently saw the highest level of outstanding call options since the early weeks of the year. The outstanding contracts can amplify volatility in bullion, as dealers rush to hedge by buying ETFs when prices rise and selling when prices fall.<\/p>\n
A trader nearly doubled a $3.2 million bearish gold-options bet within hours on Wednesday, after buying 80 000 put spreads on the SPDR Gold Shares ETF and unwinding them as bullion fell during and after the Fed press conference.<\/p>\n
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Spot gold was up\u00a02.3%\u00a0to $4 360.92\u00a0an ounce at 2:13 p.m. in London. Silver climbed\u00a03.8%\u00a0to $65.38\u00a0an ounce. Platinum and palladium also advanced. The Bloomberg Dollar Spot Index, a gauge of the US currency, was\u00a00.1%\u00a0lower after rising 0.5% on Wednesday.<\/p>\n
\u00a9 2026 Bloomberg<\/p>\n
#Gold #surges #treasuries #oil #price #slide #deepens<\/p>\n","protected":false},"excerpt":{"rendered":"
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