Commodities
Gold Surges on Softer Oil Prices, Fed Rate Outlook Looms
Gold prices rose by 1% on Tuesday to $4,092.43 per ounce, driven in part by lower oil prices that have tempered inflation fears and reduced bets of a US interest rate hike.
The decline in oil prices, which fell to a three-week low after comments from Qatari and US officials raised hopes for a diplomatic resolution to the Iran war, is seen as one of the main drivers supporting gold prices.
Bart Melek, global head of commodity strategy at TD Securities, attributed the interest rate outlook to the decline in oil prices, saying that it has contributed to short-term rates falling slightly.