Gold Soars to One-Week High as Oil Prices Fall

Gold prices surged to a one-week high on Friday, setting up their first weekly gain in four sessions. The rise came as lower oil prices eased concerns about prolonged inflationary pressures.

The spot price of gold climbed 0.7% to $4,372.27 per ounce by 09:16 a.m. EDT (1316 GMT), its highest level since September 11. US gold futures rose 0.3% to $4,411.20.

According to Chris Gaffney, president of world markets at EverBank, the easing of oil prices reduces inflation pressures and has unwound short positions in gold.