Gold rises slightly on lower oil prices, subdued dollar
BENGALURU: Gold inched higher on Friday as lower oil prices and a subdued US dollar offered support, while market participants kept their focus on developments in the Middle East and the outlook for global monetary policy.
Gold prices experienced a slight increase on Friday, driven by lower oil prices and a weakened US dollar, according to wire material. Spot gold was trading at US$4,352.60 per ounce, up 0.3% from the previous session. In contrast, US gold futures for December delivery fell marginally by 0.2% to US$4,391.60. Lower oil prices and a weaker dollar, which makes commodities priced in US dollars less costly for foreign holders, provided support for gold prices.
The Federal Reserve's recent interest rate hike and expectations of further increases this year also contributed to the positive sentiment. Despite this, Goldman Sachs maintained its forecast for gold prices at US$5,400 per troy ounce by the end of 2027, suggesting that tighter monetary policy may slow gold's rally but not bring it to an end.
The Bank of England held its interest rates steady but indicated a potential rate hike, while the Bank of Japan was set to raise rates to a 31-year high. Data indicated a surprise drop in new unemployment claims in the United States, though analysts noted the decline might have been influenced by the Labor Day holiday. Spot silver rose 0.7% to US$65.64 per ounce, platinum gained 0.9% to US$1,785.55, and palladium added 0.1% at US$1,292.47.
Written by urgent.news from New Straits Times's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
