Gold Prices Edge Higher Amid Weakening Oil Link
Spot gold prices edged higher on Thursday, reaching $4,355.05 per ounce by 0423GMT, up 0.3% from the previous day. US gold futures were down 0.1% at $4,394.10.
The increase in gold prices coincided with a decline in oil prices for the third straight day and a subdued dollar. The weaker dollar makes greenback-priced commodities less expensive for holders of other currencies, which can boost demand for these assets.
Ahmad Assiri, research strategist at Pepperstone, said that the link between gold and oil could weaken 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.
On Wednesday, the Federal Reserve raised interest rates and flagged more hikes in the coming months. Goldman Sachs maintained its end-2027 gold price forecast at $5,400 despite the Fed's rate increase, citing that tighter policy is likely to slow bullion's rally but not derail it.