Gold Climbs on Softer Dollar and Lower Oil Prices Amid US Jobs Data Anticipation
Gold prices continued their upward trend on Wednesday, rising for a third consecutive session. The metal's value increased due to a softer US dollar and lower oil prices. Spot gold rose 1.3% to $4,127.04 per ounce as of 0253 GMT, while US gold futures climbed 0.8% to $4,184.40.
The subdued US dollar made greenback-priced metals more attractive to holders of other currencies. Oil prices steadied after falling sharply in the previous two sessions, which can ease inflation concerns that often drive expectations of higher interest rates.
Analysts believe gold's relationship with oil remains strong, as oil prices have a significant impact on global inflationary pressures. If there is progress towards de-escalating tensions between the US and Iran, gold prices could rise further, according to Kelvin Wong, a senior market analyst at OANDA.