Gold Prices Soar as Falling Oil Prices Ease Inflation Concerns

Global gold prices reached a one-week high on September 18 as falling oil prices eased concerns about persistent inflation. US spot gold traded 0.3% higher at $4,352.39 an ounce after reaching its highest level since September 11 earlier in the session.

The stronger US dollar restrained the advance, but bullion was up about 0.2% for the week at the time of the report. US gold futures for December delivery moved in the opposite direction, settling 0.2% lower at $4,390.30 an ounce on September 18.

Cheaper oil provided some relief from inflationary pressure, although the risk of an energy supply shock from the region remained a major concern. Chris Gaffney, president of world markets at EverBank, linked gold's recovery to investors closing positions that had been taken in anticipation of further declines.