Oil Shock Weighs on Gold Rally as Prices Stall Near $4,130
Gold prices stalled near $4,130 an ounce on Thursday as investors weighed a weaker dollar against rising oil prices. The precious metal was little changed at $4,132.01 after reaching its highest level since July 7 at $4,165.87 on Wednesday.
The pause in gold's gains follows a strong technical rebound from below $4,000, but the market is struggling to extend its rally as the Middle East conflict strengthens expectations that the Federal Reserve may need to tighten policy again.
Brent crude climbed above $95 a barrel, its highest level in more than six weeks, after another round of US strikes on Iran and attacks on Saudi-linked tankers in the Red Sea.
IndusInd Securities analyst Jigar Trivedi said the oil rally was keeping inflation and rate-rise concerns alive, preventing gold from fully benefiting from a modest decline in the dollar. The dollar index eased about 0.1%, which normally makes bullion more affordable for buyers using other currencies.