Gold Surges as Oil Prices Plummet Ahead of US Jobs Report
Gold prices have been rising steadily this week and are on track for their strongest weekly gain since January, driven in part by lower oil prices. The current price of spot gold is $4,235.57 per ounce, up 4.8% from the start of the week.
The decline in crude oil prices has eased inflation concerns and reduced expectations of higher-for-longer interest rates, which tend to weigh on gold's appeal as it offers no yield. This has led to a boost for gold, an inflation hedge that benefits when interest rates are low.
Investors are now looking forward to the U.S. nonfarm payrolls data release at 1230 GMT, which is expected to provide clues on the interest rate outlook. According to the CME FedWatch Tool, there's a 55% chance of a U.S. rate hike in September.