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Gold extends recovery as oil falls and Middle East tensions ease

ING strategist Ewa Manthey says gold posted its first monthly gain since February, while lower oil reduces inflation worries.

Reported · Written up by our desk · Precious Metals

Gold has extended its rebound and logged its first monthly gain since February, according to ING strategist Ewa Manthey, with support coming from easing Middle East geopolitical tensions and sharply lower oil prices.

Manthey links the improvement in bullion to reports of diplomatic efforts aimed at improving shipping conditions through the Strait of Hormuz, which helped drive a decline in oil.

In the same view, uncertainty around US monetary policy, and expectations that rates will stay higher for longer, are seen as a ceiling on how much gold can rise.

FXStreet also noted a separate market setup in its insights package, including a focus on GBP/USD and EUR/USD, but the gold outlook centered on geopolitical and oil driven moves.

Latest closeGold $4,106.70 ▲1.4%|EUR/USD 1.151 ▼0.1%|GBP/USD 1.343 ▼0.2%

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