Gold Rises with Softer Dollar Amid Lower Oil Prices

Gold prices rose for a third consecutive session on Wednesday, August 5, as a softer US dollar and lower oil prices made greenback-priced metals more attractive to holders of other currencies.

The spot price of gold increased by 1.3 per cent to $4,127.04 per ounce at 0253 GMT, while US gold futures rose 0.8 per cent to $4,184.40.

Lower oil prices can ease inflation concerns that often lead to expectations of higher interest rates. This may be good news for gold, as its relation with oil is still intact.

Kelvin Wong, a senior market analyst at OANDA, stated that if a clear roadmap to further de-escalation in tensions is established, gold prices could move higher.