Gold Falls Despite War Risks, Oil Prices Over $100 Squeeze Safe-Haven Demand
Gold prices fell for the second consecutive day despite geopolitical tensions and rising oil prices. The precious metal slipped 0.4% to $4,030.09 an ounce by 0333 GMT on Friday, with August futures declining by the same margin to $4,033.20. This comes as Brent crude surged above $100 a barrel for the first time since May, reviving inflation concerns and complicating the interest-rate outlook ahead of next week's Federal Reserve meeting.
The sharp reversal shows that investors remain unwilling to chase gold while oil prices, bond yields, and policy expectations are moving higher. The metal's repeated recoveries around $4,000 suggest this level has become an important short-term anchor, with sizeable buyers returning whenever prices approach or briefly fall below it.
Brian Lan, managing director of GoldSilver Central, notes that the recent recovery is trapped in a broad range between roughly $3,980 and $4,170. A sustained move below $3,980 would weaken this recovery, while a return above $4,100 would be needed to restore stronger upside momentum.