Gold rises as oil falls and dollar strengthens

The move matters because bullion has been locked in a tug-of-war between inflation expectations and the dollar. Lower crude prices reduce the risk of sticky energy-driven inflation, which can ease pressure on central banks to keep policy tight and revive appetite for non-yielding assets such as gold.

Brent crude fell for a third straight session as concerns over Saudi supply disruptions faded, even as the Middle East conflict kept a geopolitical risk premium in place. That shift helped gold overcome a dollar that hit a more than seven-week high, a headwind because it makes the metal more expensive for buyers using other currencies.

Chris Gaffney, president of world markets at EverBank, said moderating oil prices were easing inflation pressure and that precious-metals investors had built short positions on expectations of a US rate increase, only to see those bets quickly unwind.

Gold mining shares and bullion funds also reflected the rebound. GDX, the VanEck Gold Miners ETF, rose to $97.83, while GLD, the SPDR Gold Shares ETF, was broadly steady near $400 after earlier strength, showing investors continue to position for both price volatility and policy uncertainty.

The next catalyst is whether oil stays subdued and whether the dollar’s strength extends. Any renewed flare-up in Middle East tensions or fresh signs of inflation persistence could quickly push gold higher again.