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Market data compiled by Kitco News showed spot gold rising 0.5 percent to $4,144.83 an ounce on the day while WAM reported that gold rises as oil prices tumble. US gold futures climbed 0.8 percent to $4,157.50. The precious metal was headed for a 1.2 percent weekly gain, marking its first positive week since May.
CNBC-TV18 reported that crude oil prices had returned to levels seen before the recent US-Iran conflict. The normalization of flows through the Strait of Hormuz contributed to the decline in Brent and WTI futures. This development helped temper expectations of prolonged inflationary pressure from energy costs.
A CNBC analysis from July 13 detailed how gold had previously fallen more than 3 percent to around $3,991 an ounce when oil surged on fears of a strait closure. President Trump’s announcement of a naval blockade had boosted oil by 5 percent at that time. The subsequent de-escalation has now supported a recovery in bullion prices.
According to Crypto Briefing, gold futures had fallen 1.48 percent to approximately $4,060 per ounce during the height of the tensions. Rising Treasury yields to 4.902 percent for the 30-year note further pressured the metal. Lower oil prices have since alleviated some of those rate-hike concerns.
TradingKey noted that gold prices around $4,720 in March had also faced headwinds from similar dynamics. The current movements underscore how oil-driven inflation expectations can influence investor appetite for safe-haven assets like gold. Regional peace prospects appear to be a key driver in the latest shift.
The Wall Street Journal reported in March that gold settled down 1 percent to $5,115.80 when WTI crude hit $95 a barrel. Such inverse reactions have become common during periods of Middle East volatility. Analysts continue to watch for the impact on Federal Reserve policy decisions.
