Gold edges up as oil decline eases inflation concerns
Falling crude prices boost expectations for a pause in US interest rate increases, supporting bullion markets.
At a glance
- Oil prices fell to approximately $103 per barrel, easing inflation concerns
- Traders now see better odds of the Federal Reserve pausing interest rate hikes
- Gold-backed ETFs added holdings and China's central bank increased purchases
- Gold has declined about 20 per cent in value since late February
Gold prices inched higher on Monday as declining oil costs reduced inflation worries, prompting traders to anticipate a potential pause in Federal Reserve rate hikes. Global bullion traded slightly lower at $4,190.15, while UAE prices remained stable with 24-karat gold holding above Dh500.
Brent crude eased to around $103 a barrel following reports of an energy ceasefire agreement between Russia and Ukraine. Gold-backed exchange-traded funds added holdings last week, and China's central bank continued purchasing gold at an accelerated pace. However, gold remains significantly below earlier levels, having lost about a fifth of its value since late February.
Why it matters
Oil and interest rate expectations are key drivers of gold prices. Lower inflation pressures could influence central bank policy decisions affecting global markets.
Original reporting
This brief was written with AI assistance from the reports listed above and checked against our editorial policy. Spotted an error? Request a correction.