Gold Rises 2.4% as Dollar Weakens and Oil Falls

Gold spot prices climbed 2.4% to $4,370 per ounce on Thursday. US gold futures rose 0.54% to $4,410 per ounce. The gains followed a drop in the value of the US dollar. Crude oil prices also fell during the same period.

Investors sought safe-haven assets amid rising geopolitical risks. The dollar index retreated from its seven-week high. Lower energy prices reduced inflation pressure on the gold market. These factors combined to boost demand for precious metals.

Silver and Platinum Also Surge

Silver prices jumped more than 4.5% to $66 per ounce. Platinum and palladium prices also increased. This broad rally indicates strong demand across the precious metals sector. The move outpaced the gain seen in gold alone.

Central Bank Decisions Shape Outlook

The Federal Reserve held rates at 3.75-4.00% on Wednesday. Markets await further policy signals from the US central bank. The Bank of England also maintained its interest rate. The Bank of Japan is expected to raise rates to a 31-year high on Friday.

High inflation and interest rates may limit short-term gains. The correction in US 10-year Treasury yields supported gold prices. Analysts note an inverse relationship between energy costs and gold. Lower oil prices typically reduce inflationary pressure on the metal.

Oil Prices Drop on Weak Demand

Brent crude fell 2.8% to $102.86 per barrel. WTI crude declined 1.77% to $100.62 per barrel. These prices were recorded at 14:30 GMT on Thursday. The drop in energy costs contributed to the broader market shift. Gold benefited from the reduced inflation expectations.

GN auto markets/commodities data confirms the trend. The dollar's weakness made gold cheaper for holders of other currencies. This affordability factor drives international buying. The market remains focused on upcoming economic data releases.