Baku:Gold prices increased by over one percent following a decrease in oil prices, which helped alleviate inflation fears. Investors are now focusing on upcoming US inflation data and new signals from the Federal Reserve regarding monetary policy.
According to Oman News Agency, spot gold rose 1.6 percent to $4,129.69 per ounce. Similarly, US gold futures for December delivery saw a 1.6 percent increase to $4,139. This follows a five percent gain in gold prices over the previous week.
The fall in oil prices occurred after US President Donald Trump stated it was highly unlikely he would authorize further strikes on Iran, as talks aimed at resolving the conflict continue. This development has eased concerns about potential oil supply disruptions.
The decline in oil prices could alleviate inflationary pressures and reduce expectations that interest rates will remain high for an extended period, thereby decreasing the opportunity cost of holding non-yielding gold. Additionally, a retreat in the dollar made gold, priced in US currency, more affordable for investors holding other currencies.
Meanwhile, US job growth accelerated in October, with the unemployment rate dropping to 4.1 percent. This has reinforced expectations of a resilient labor market, keeping the Federal Reserve on track to raise interest rates in December.
In the precious metals market, spot silver climbed 2.8 percent to $53.31 per ounce. Platinum and palladium also experienced gains, with platinum rising 1.6 percent to $1,556.14, and palladium increasing 2.1 percent to $1,044.28.