Sept 18 (Reuters) - Gold rose for a second straight session to a one-week high as oil prices fell on Friday and investors shrugged off the Federal Reserve's first rate hike in three years and hawkish commentary.
Spot gold was up 0.9% at $4,378.97 per ounce by 1141 GMT. US gold futures rose 0.4% to $4,418.50.
Oil prices fell for a third straight session, as easing concerns over Saudi supply disruptions outweighed anxiety about a widening Middle East conflict.
"The precious metal appears to have taken the Fed's hawkish signals in its 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 on Wednesday 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 signalled 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 2.8% to $67.03, platinum gained 2.6% to $1,814.57 and palladium added 3.2% at $1,331.95. All metals were headed for a weekly gain.
Reporting by Pablo Sinha and Ashitha Shivaprasad in Bengaluru; Editing by Eileen Soreng, Diti Pujara and Harikrishnan Nair
