Gold Loses Ground as Brent Oil Surges Past $100
Gold prices continued to soften on Friday after falling by 2% in the previous session. The metal's decline was attributed to rising Brent crude prices, which broke through $100 a barrel for the first time since May.
The surge in oil prices has stoked inflation concerns and strengthened the case for higher interest rates ahead of next week's Federal Reserve policy meeting.
Despite this, gold is still on track to post a small weekly gain of 0.3%.
Brian Lan, Managing Director of GoldSilver Central, noted that gold has been trading in a narrow range between $3,980 and $4,170 for weeks, with big buyers stepping in whenever prices approach $4,000.
The European Central Bank maintained interest rates as expected on Thursday but left the door open for another increase in September.