Gold prices rebounded Thursday as bargain hunters moved in to capitalize on the metal’s steepest decline in over a year, shrugging off surging oil prices and fresh Middle East tensions.
Bullion climbed as much as 1% to $4,849.10 an ounce after plunging nearly 4% in the previous session—marking six consecutive days of losses, the longest such streak since late 2024.
The recovery comes despite hawkish signals from the Federal Reserve, which held rates steady on Wednesday and projected just one cut this year. Chair Jerome Powell signaled that reducing rates would require concrete progress on inflation, now complicated by escalating conflict in the Persian Gulf.
Oil prices advanced Thursday after Iran and Israel struck key energy facilities, stoking inflationary concerns that typically pressure non-yielding assets like gold. A stronger dollar added to headwinds for commodities priced in the US currency.
“Gold has entered a consolidation period,” said Christopher Wood, global head of equity strategy at Jefferies. He expects bullion to trade between $4,500 and $5,500 an ounce in the near term.
Despite recent weakness, gold remains up roughly 12% year-to-date after hitting an all-time high above $5,595 in late January.
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