Gold holds gain above US$4,100 as lower oil eases inflation woes
GOLD held gains as inflation concerns eased alongside oil prices on hopes for a diplomatic resolution to the war in the Middle...
Gold maintained its upward trajectory above US$4,100 amid easing inflation worries, spurred by a decline in oil prices and optimism over a potential diplomatic resolution to the Middle Eastern conflict. The precious metal traded around US$4,140 per ounce, following a 1.7 per cent gain on Monday and a 5 per cent increase last week.
This rally was fueled by Brent crude sliding to near US$92 per barrel as anticipation grew for a breakthrough in US-Iran peace talks following the recent Democratic landslide in midterm elections. Oil and gold have often moved inversely this year, with increasing energy costs feeding inflation and exerting downward pressure on monetary policy, which posed challenges for gold's intrinsic value.
Meanwhile, a weaker US dollar made the asset more affordable to international buyers. Spot gold remained stable at US$4,139 as of 7:59 am Singapore time, while silver held steady at US$53.42 after a 3 per cent surge in the previous session. Platinum and palladium declined slightly. The Bloomberg Dollar Spot Index was unchanged after a 0.5 per cent decline on Monday.
Written by urgent.news from The Business Times - Companies & Markets's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
