Gold Prices Move Up Slightly on Friday But Face Weekly Drop Due to Oil Costs

Gold prices went up slightly on Friday, moving away from the lowest level seen in over a year during the previous session. Even with this small daily recovery, the precious metal remains on track for a weekly loss. Higher oil prices are driving this downward weekly trend by raising concerns about central bank rate hikes.

Context

Precious metal prices often react strongly to changes in global oil costs and central bank interest rate decisions. When oil prices rise, they tend to push up overall inflation, leading investors to worry that the US Federal Reserve may raise interest rates further.