Gold Price Slips Below $4,100 as Oil Prices Plummet

Gold prices slipped below $4,100 an ounce on July 27 as tensions in the Middle East temporarily eased, causing oil prices to fall. This reduction in concerns about inflation and expectations of interest rate hikes in the US pulled gold prices down.

The spot price of gold decreased by 0.04% to $4,091.23 per ounce, while US gold futures contracts increased by 0.59% to $4,095.00 per ounce.

The weakening US dollar also supported gold, as the USD index (DXY) fell 0.3%, making gold more attractive to buyers holding other currencies.

Oil prices plummeted over 6% in the session, pressuring gold. Although often seen as an inflation-hedging asset, gold does not generate yields, making it less appealing when interest rates rise.