Gold Prices Rebound as Oil Drops Below $100
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| Gold Prices |
Gold prices edged higher on Friday, recovering part of the previous session's losses as oil prices slipped below the $100-a-barrel mark, while investors closely monitored developments in the Middle East for fresh clues on energy-driven inflation risks and the outlook for U.S. interest rates.
Spot gold rose 0.2% to $4,058.67 per ounce, after falling 2% on Thursday to $4,047.26 per ounce.
Meanwhile, U.S. gold futures for August delivery also advanced 0.2%, settling at $4,061.60 per ounce.
Lower Oil Prices Support Gold
Gold trimmed earlier losses and returned to positive territory as declining crude oil prices eased concerns over inflationary pressures stemming from higher energy costs.
"Gold moved from negative territory earlier in the session to modest gains, supported by lower oil prices, which reduced pressure on the Federal Reserve to adjust interest rates."
Market participants continue to monitor geopolitical developments across the Middle East, with any escalation likely to influence both energy prices and expectations for the Federal Reserve's monetary policy in the months ahead.