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%.
US gold futures rose 0.6% to $4,428.
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.
The US Federal Reserve raised interest rates on Wednesday and flagged more hikes in the coming months.
Goldman Sachs said in a note that it expects "the impact of tighter monetary policy to be felt primarily through a slower near-term appreciation path rather than a lower terminal gold price."
Meanwhile, the Bank of Japan raised interest rates to a 31-year high and signaled its readiness to keep pushing up borrowing costs, joining other major central banks in fighting persistent inflation pressures.
"Looking ahead, the state of the conflict in the Middle East will be a key factor influencing gold prices. If the conflict prolongs and oil prices remain high well into next year, that could prompt central banks to raise rates more than investors expect, which would put downward pressure on gold prices," said Hamad Hussain, a climate and commodities economist at Capital Economics.
Spot silver rose 2.7% to $66.98, platinum gained 2.6% to $1,814.95 and palladium added 3.1% at $1,330.95. All metals were headed for a weekly gain.
