Gold Prices Rebound Amid Weaker Dollar and Easing Oil Fears
Gold prices rebounded on Thursday after touching a near-six-week low the day before. The yellow metal rose by 1.4% to $4,324.39 an ounce by 06:59 ET (10:59 GMT), supported by a softer U.S. dollar and retreating oil prices.
The weaker dollar made dollar-denominated bullion cheaper for holders of other currencies. Oil prices also extended their decline as fears of supply disruptions eased following reports of additional Saudi crude cargoes routed through Oman, though prices remained above $100 a barrel on concerns that the Middle East conflict could widen.
Major gold miners followed suit, with Newmont Goldcorp and Barrick Gold rising about 1.2% each. South African producers led broader gains, with Sibanye-Stillwater up 3.7%, DRDGold climbing 2.3%, Harmony Gold adding 2.4%, and Gold Fields rising 1.3%. Canadian miners Kirkland Lake and B2Gold gained 2.3% and 1.2%, respectively.
The rebound came a day after the Federal Reserve raised interest rates, signaling additional increases in the months ahead. While gold is traditionally viewed as an inflation hedge, a higher-rate environment tends to dull its appeal by boosting the relative attractiveness of interest-bearing assets.