Gold Extends Gains to Scale One

Gold rose for a second straight session on Friday, hitting a one-week high, as oil prices fell, while investors kept a close watch on developments in the Middle East conflict.

Spot gold was up 1.1% at $4,387.69 per ounce by 0829 GMT, and was on track for a weekly gain ‌of 1%.

Oil prices fell ‌for ⁠a third straight ⁠session, as easing concerns over supply disruptions outweighed anxiety about a widening Middle East conflict.

"The precious metal appears to have taken the Fed's hawkish signals in stride, instead finding immediate relief from falling oil prices amid hopes that the Fed's hiking cycle will prove shallow," said Han Tan, chief market analyst ⁠at Bybit.

Although gold is traditionally viewed as ‌a hedge against inflation, higher rates ‌can curb its demand by increasing the appeal of yield-bearing assets.