Spot gold edged up 0.3% to settle at $4,358.58/oz, while gold futures rose 0.3% as well to settle at $4,396.20/oz

Gold prices eked out slight gains on Tuesday, as a slide in oil for a fifth straight session helped offset a dollar pegged at a nearly eight-week high.

Spot gold edged up 0.3% to settle at $4,358.58/oz, while gold futures rose 0.3% as well to settle at $4,396.20/oz.

The U.S. Federal Open Market Committee (FOMC) unanimously voted to raise the federal funds rate to 3.75%-4.00% from 3.50%-3.75% last Wednesday. Moreover, the U.S. central bank’s updated Summary of Economic Projections showed that at least 12 members of the FOMC saw one more rate hike this year, while Chair Kevin Warsh’s post-decision press conference was decidedly hawkish.

Just under a month ago, gold rallied to within a few dollars of $4,700, hitting its highest level since mid-May. But it has struggled ever since, and last Wednesday evening it dropped to $4,235 soon after the U.S. Federal Reserve raised interest rates by 25 basis points, David Morrison, senior market analyst at Trade Nation, noted.

It has recovered a touch since then, and its daily MACD has flattened out a touch around its zero line. This could suggest that the worst of the selling is over, although there hasn’t yet been a serious test of support at $4,200, let alone the more significant $4,000 level, he added.

Central bank rate hikes due to energy-driven price pressures has been a big theme this month, with the European Central Bank and the Bank of Japan also tightening monetary policy. Against this backdrop, a recent sustained slide in oil prices has grabbed the attention of precious metal market participants.

Crude benchmarks have dropped for five straight sessions amid easing supply disruption fears and hopes of diplomatic progress in the Middle East. Traders have taken heart from Saudi Arabia’s decisive actions to offset the closure of a vital pipeline which was damaged amid a widening conflict with Houthis in Yemen.