Gold Prices Rise as Lower Oil Prices Ease Inflation Fears
Spot gold rose 0.6 percent to 4,768.19 dollars on Tuesday as oil prices dropped below 100 dollars. Hopes for U.S.-Iran peace talks eased inflation concerns.
Gold prices advanced on Tuesday, rebounding from a near one-week low as a decline in Brent Crude Oil prices helped to soothe investor concerns regarding inflation. Market participants shifted their focus toward the possibility of renewed diplomatic efforts between the United States and Iran, which could potentially ease supply constraints in the energy market.
Spot gold gained 0.6% to reach $4,768.19 per ounce by 0237 GMT, after having touched its lowest level since April 7 during the previous session. U.S. gold futures for June delivery also saw a rise of 0.5%, climbing to $4,790.70. Oil prices dropped below $100 per barrel following indications that Washington and Tehran might engage in dialogue to end their conflict, which has been exacerbated by a U.S. blockade of the Strait of Hormuz.
