Gold Prices Rebound as Oil Prices Dip Amid Saudi Pipeline Concerns

Gold prices are on track for a weekly gain as oil prices dipped on Friday. However, some gains were pared due to losses in oil prices. Spot gold is up about 0.9% over the past week, and it had recovered more than 2% on Thursday after touching a near six-week low on Wednesday.

The recovery was sparked by news that Saudi Arabia's state-backed oil company informed at least two oil refining customers in Europe that they will receive no crude oil next month following an attack on the kingdom's main east-west pipeline to the Red Sea. The report comes amid fighting between Saudi Arabia and Yemen's Iran-backed Houthis, which has sparked fears around oil supplies.

Hopes remain that Saudi Arabia could soon partially restore flows through its key east-west pipeline, which was damaged in drone attacks last week. The pipeline normally transports crude to Yanbu on Saudi Arabia's Red Sea coast. According to Bloomberg News, Saudi Arabia is seeking to restore about half of the pipeline's capacity within days.