$100 Oil Dampens Gold Prices as Inflation Fears Rise
Gold prices fell on Friday as Brent crude surged above $100 per barrel, reviving inflation concerns and complicating interest-rate expectations ahead of next week's Federal Reserve meeting.
The spot price of gold slipped 0.4% to $4,030.09 an ounce by 0333 GMT, while August futures declined by the same margin to $4,033.20. Despite this, gold is still on track for a modest 0.4% weekly gain.
Brian Lan, managing director of GoldSilver Central, notes that prices approaching or briefly falling below $4,000 has historically triggered sizeable buying interest, keeping the metal stuck in a range between roughly $3,980 and $4,170. However, bullion has struggled to hold breakouts due to higher energy costs strengthening the case for tighter monetary policy.
A sustained move below $3,980 would weaken the recent recovery, while a return above $4,100 would be needed to restore stronger upside momentum.