Gold Price Rebounds to Near $4,345 Amid Falling Oil Prices and Weaker US Dollar
The gold price rebounded on Friday to around $4,345 in early Asian trading hours. This recovery came as oil prices continued their downward trend for a second consecutive day, easing concerns about inflation.
Oil prices dropped to a one-week low after signs emerged that supply disruptions in the Middle East could ease, with Saudi Arabia seeking to partially restore flows through a key pipeline. US President Donald Trump is also set to meet Gulf leaders at the UN General Assembly in New York next Tuesday to discuss the next steps in the Iran conflict.
David Meger, director of metals trading at High Ridge Futures, noted that energy prices are down significantly and this has removed some pressure on the gold market. However, further US interest rate hikes could still exert selling pressure on the gold price.