Gold Prices Rebound as Oil Retreats, Interest Rate Pressure Eases

Gold prices rebounded on Friday as oil prices retreated, reducing pressure on the US Federal Reserve to adjust interest rates. Spot gold rose 0.4 per cent to $4,061.36 an ounce by 1115 GMT, after earlier dropping about 0.6 per cent.

The shift in sentiment came after Brent crude prices surged 7 per cent on Thursday, but retreated below the $100 milestone on Friday. Elevated oil prices due to Gulf supply disruptions had been weighing on gold prices as they raise expectations of higher-for-longer interest rates.

UBS analyst Giovanni Staunovo said 'Gold has shifted from earlier in negative territory to slightly positive, driven by lower oil prices.'