Gold Sees One-Week High Amid Easing Oil Prices and Rate Expectations

Gold prices reached a one-week high on Friday and are poised for their first weekly gain in four. The surge comes as lower oil prices ease concerns about prolonged inflationary pressures, although a stronger dollar limits gains.

Sentiment shifted after Brent crude oil prices extended losses for a third straight session due to easing supply disruptions from Saudi Arabia outweighing anxiety over the Middle East conflict.

With inflation worries eased, gold investors unwound short positions, said Chris Gaffney, president of world markets at EverBank. This rapid reversal follows expectations of a US rate hike and a subsequent selloff in gold.