Gold Edges Higher on Lower Oil Prices, Weaker Dollar

Gold prices rose slightly on Friday as oil prices dropped and the US dollar remained subdued. The precious metal's increase was modest, with spot gold up 0.2% at $4,346.65 per ounce by 0145 GMT.

The decline in oil prices may have contributed to the rise in gold prices, as a weaker dollar makes commodities less expensive for holders of other currencies. However, experts warn that if oil corrects sharply, it could weaken the link between gold and oil.

Ahmad Assiri, research strategist at Pepperstone, noted that 'a weaker dollar could accompany higher yields' if rising yields stem from deteriorating fiscal confidence or war-related spending.