Gold Edges Higher as Oil Retreats from $100 Mark

Gold prices rebounded on Friday, gaining 0.2% to $4,055.38 per ounce as oil prices retreated below $100 a barrel.

The recovery came after gold fell 2% on Thursday to $4,047.26, but investors are still monitoring developments in the Middle East for signals on energy-driven inflation risks and US interest rates.

Brent crude surged more than 7% on Thursday, climbing above $100 a barrel, following US President Donald Trump's threat of 'severe military punishment' against Iran and its Houthi allies after an attack on two Saudi oil tankers in the Red Sea.

However, oil prices retreated below $100 on Friday, which could weigh less heavily on gold as expectations for elevated interest rates may be reduced.