Gold Sees Best Week Since January as Oil Prices Weaken
Gold prices have surged to their best week since January due to weaker oil prices and hopes of peace in the Middle East. The metal has gained over 5% for the week, with spot gold up 0.4% at US$4,254.11 per ounce as of Friday morning.
Matt Simpson, a senior analyst at StoneX, attributes the surge to inflation expectations dropping after hopes of peace in the region. This allowed gold to break through its multi-week consolidation above US$4,000.
US President Donald Trump's comments on the war with Iran also contributed to the surge, as he stated that he believed the conflict would be over soon and mentioned issues with supplies of some weapons.
The release of the US Labor Department's nonfarm payrolls (NFP) report for July is expected to provide further direction. Traders currently see a 55% chance of a US rate hike in September, down from 63% last week, according to the CME FedWatch Tool.