(Bloomberg) -- Gold recovered some ground after sliding nearly 4% on Wednesday, with dip-buyers helping the metal to withstand spiking oil prices and inflationary risks from the war in the Middle East.

Bullion rose as much as 0.7%, reversing some losses sustained over six straight days of decline — the longest losing streak since late 2024. The Federal Reserve held interest rates steady at its latest meeting and projected just one cut this year, with Chair Jerome Powell saying a reduction would require progress in slowing inflation. The conflict makes developments for the US economy “uncertain,” Fed officials said in a statement.

Most Read from Bloomberg

Trump Signs Order to Launch Vance-Led Anti-Fraud Task Force

Russian Oil Bound for China Is Diverted as India Grabs More

US Carrier Involved in Iran Fight Heads Back to Port After Fire

Samsung to Stop Selling $2,899 TriFold Phone After Three Months

Europe Stands Up to Donald Trump Threats Over Iran War Support

Oil advanced on Thursday after Iran and Israel traded strikes on some of the most important energy facilities in the Persian Gulf region. Nearly three weeks into the war, soaring crude and gas prices are raising inflationary risks, which make rate cuts by the Fed and other central banks less likely. This is a headwind for gold, which doesn’t pay interest. A stronger dollar has also weighed on commodities priced in the US currency.

“Dollar strength and broader tightening pressures across developed-market central banks present an uncertain near-term pathway for gold,” said Nicholas Frappell, global head of institutional markets at ABC Refinery. “But if inflation rises faster than policy rates, falling real rates may help gold in the medium term.”

Bullion is still up around 12% so far this year, though upward momentum has stalled in recent weeks as prospects for a near-term rate cut have faded and some investors sold the metal to meet margin calls elsewhere in their portfolios. Bullion hit an all-time high above $5,595 an ounce in late January; from the beginning of the war on Feb. 28 to Wednesday’s close, it fell nearly 9%.

After the latest Fed meeting, Powell also made rare statements about his future at the US central bank in the wake of an investigation by the Department of Justice. He said he had no intention of resigning as a governor until the probe is complete.

If a successor is not confirmed before his term as chair ends in May, Powell said he would serve as chair pro tempore — a temporary designation previously conferred by the Fed when the role of chair was vacant. The DOJ investigation has raised concerns about political intervention into the Fed, eroded trust in US assets and supported gold.

Spot gold rose 0.4% to $4,835.55 an ounce at 9:21 a.m. in Singapore. Silver edged up 0.2% to $75.49. Platinum was little changed, while palladium advanced. The Bloomberg Dollar Spot Index slipped 0.1% after gaining 0.5% in the previous session.

Most Read from Bloomberg Businessweek

American Retirees Want to Leave the Country. Italy and Costa Rica Are Happy to Have Them

We Kinda Messed Up Our Retirement

People Are Using Claude to Do Their Taxes (But Maybe They Shouldn’t)

The Rise and Fall of Peter Attia’s Longevity Empire

Small Businesses Are Pushing Back Against Private Equity

©2026 Bloomberg L.P.