Gold Edges Higher as Oil Prices Plummet
Gold prices edged higher on Friday as lower oil prices and a subdued US dollar provided support. The commodity market remained focused on Middle East developments and global monetary policy outlook.
Spot gold rose by 0.3% to $4,355.05 per ounce at 0423 GMT. Conversely, US gold futures declined by 0.1% to $4,394.10.
The lower oil prices for a third consecutive day and the dollar's subdued state after retreating from recent highs contributed to the increase in gold prices. A weaker dollar makes commodities priced in greenbacks less expensive for holders of other currencies.
Ahmad Assiri, research strategist at Pepperstone, noted that the link between gold and oil could weaken if certain conditions are met: 'if oil corrects sharply, easing inflation and rate-hike expectations, or if extreme escalation forces the world to counter recession, or if fiscal recklessness dominates the horizon over the rate channel.'