Gold prices jumped Wednesday, supported by falling oil prices that eased inflation concerns and reduced expectations of aggressive central bank rate hikes.
Spot gold rose nearly 2% to $4,558 per ounce, rebounding strongly after hitting a four-month low earlier in the week.
U.S. gold futures climbed even higher, gaining over 3%, as investors moved back into bullion amid shifting macroeconomic expectations.
Declining crude prices helped calm inflation fears, a key driver influencing monetary policy outlooks and interest rate expectations.
Market data showed traders reducing bets on further U.S. Federal Reserve rate hikes, reinforcing support for non-yielding assets like gold.
Analysts noted that while gold can act as a hedge, higher interest rates typically limit its upside by increasing the opportunity cost of holding bullion.
Federal Reserve officials signaled a cautious stance, suggesting rates may remain steady before any future policy adjustments are considered.
Other precious metals also advanced, with silver, platinum, and palladium posting gains alongside gold’s broad-based rally.
