Gold Rebounds as Oil Retreats Ahead of Fed Meeting

Gold prices rebounded on Friday as oil retreated from its previous day's spike. The spot price of gold rose by 0.4% to $4,061.36 per ounce at 1115 GMT, after earlier falling around 0.6%. US gold futures for August delivery also gained 0.3% to $4,063.60.

The recovery in gold prices came as oil prices pulled back from their record high of over $100 a barrel reached the day before. Brent crude had jumped 7% on Thursday following reports of an attack on two Saudi oil tankers in the Red Sea, but eased back below that level on Friday.

According to UBS analyst Giovanni Staunovo, gold turned positive as falling oil prices eased pressure on the Federal Reserve to raise interest rates. He stated that the bank's view remains that the Fed will hold rates steady, which should support gold prices in the coming months.