Gold rises 1.2% to one-week high as oil prices ease inflation fears

  • Gold rose 1.2% to $4,390.11 per ounce, reaching a one-week high and posting its first weekly gain in four weeks.
  • WTI crude fell 2.17% to $99.70 per barrel, prompting investors to unwind gold short positions.
  • The Federal Reserve lifted rates to 3.75%-4%, while traders priced a 55% chance of another October hike.

Gold rose 1.2% to $4,390.11 an ounce on Sept. 18, reaching a one-week high and recording its first weekly gain in four weeks. U.S. gold futures settled 0.6% higher at $4,424.90, while silver, platinum and palladium also advanced. A third consecutive decline in WTI crude eased inflation concerns and prompted precious-metals investors to unwind short positions. Gold still faced pressure from a more than seven-week high in the dollar, a Federal Reserve rate increase to 3.75%-4% and expectations of further tightening; traders priced a 55% chance of another October hike. The Bank of Japan also raised rates to a 31-year high. Gold is now testing resistance around $4,400-$4,440, with the Federal Reserve's October decision and the sustainability of lower oil prices likely to shape the next move.

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