Gold prices climbed toward $4,400 per ounce on Friday. The metal continued its recovery from a six-week low reached earlier this week. Spot prices rose approximately 1% during the trading session.
The Bank of Japan raised its policy interest rate by 0.25 percentage points to 1.25%. This rate represents the highest level for the central bank in over 30 years. A 7-2 split vote led markets to view the hike as dovish, which weakened the yen.
Oil prices fell for a third consecutive day, easing immediate inflation concerns. U.S. Treasury yields pulled back from recent highs following the decline in energy costs. Lower yields reduced the opportunity cost for investors holding non-yielding bullion.
Gold erased all losses sustained after the Federal Reserve’s rate hike on September 16. The price movement occurred despite recent tightening from both the Fed and the Bank of Japan.