Gold Prices Gain as Oil Retreats Ahead of Fed Meeting
Gold prices ticked higher on Friday after oil prices retreated from their earlier gains. The shift in sentiment came as Brent crude prices dropped below $100 per barrel, a milestone that had fueled concerns of higher interest rates and inflation.
According to UBS analyst Giovanni Staunovo, the decline in oil prices has eased pressure on the Federal Reserve to adjust its interest rates, making gold more attractive. He noted that 'gold has shifted from earlier in negative territory to slightly positive.'
The Fed's policy meeting next week is expected to keep interest rates unchanged, with about an 80% chance of a rate hike in September, according to the CME FedWatch Tool.
In other metals, spot silver rose 1.30% to $58.43 per ounce, platinum gained 0.20% to $1,602.74, and palladium remained unchanged at $1,256.95.