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Gold jumps more than 1% as oil rout cools inflation worries

The move followed Monday’s multi-week low near $4,110, with gold bouncing to about $4,170 after WTI slid 4.3% to $89.10 a barrel.

Reported · Written up by our desk · Precious Metals

Gold prices rose more than 1.3% on Tuesday, rebounding after the metal fell to a multi-week low near $4,110 on Monday, FXStreet reported. The XAU/USD pair was last around $4,170 after bouncing off daily lows near $4,113.

FXStreet said the recovery was mainly driven by lower energy prices, with West Texas Intermediate crude falling 4.27% to $89.10 per barrel during the session. The outlet noted that cheaper energy can reduce inflation pressures.

While FXStreet reported that US Treasury yields and the US dollar remained higher, it cited New York Fed President John Williams saying the central bank is in no rush to raise rates. The article also referenced the US 10-year Treasury yield up two basis points to 5.255% and the US Dollar Index up 0.20% to 101.37.

FXStreet added that, despite hawkish rhetoric from other Fed officials including Alberto Musalem, Austan Goolsbee, and Michael Barr, the drop in energy prices helped support bullion. The outlet noted gold is typically pressured when the US dollar strengthens, but energy-driven support offset that effect.

Latest closeGold $4,147.50 ▼4.0%|WTI crude $93.42 ▲1.1%|Dollar index 101.25 ▲0.3%

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