Gold Edges Up as Oil Retreats Below $100 Amid Middle East Tensions

Gold prices rose by 0.2% to $4,055.38 per ounce on Friday morning, reversing earlier losses as oil retreated below the $100 per barrel mark.

The price increase comes as investors monitor developments in the Middle East for fresh cues on energy-driven inflationary risks and the outlook for U.S. interest rates.

UBS analyst Giovanni Staunovo attributed gold's shift to lower oil prices, which are reducing pressure on the Federal Reserve to adjust its rates.

The Fed is expected to keep rates unchanged next week, but traders are pricing in a 78% chance of a rate-hike in September, according to the CME FedWatch Tool.