Gold prices continued to decline today during Friday’s trading session
following sharp losses in the previous session
This comes as oil prices rose back above the $100-per-barrel level,
This has fueled concerns about persistent inflation and further U.S. interest rate hikes in the coming months.
By 03:33 GMT, the price of gold in spot trading had fallen 0.4% to $4,030.09 per ounce.
This represents a decline of more than $130 from the high it reached earlier this week.
U.S. August gold futures also fell 0.4% to $4,033.20 per ounce.
Analysts believe that gold continues to trade within a range of $3,980 to $4,170 per ounce.
As the price approaches the $4,000 level, major buyers continue to enter the market, limiting losses and providing temporary support.
This decline came after the price of Brent crude jumped by more than 7%, breaking through the $100-per-barrel barrier.
This followed escalating tensions in the Red Sea, which heightened expectations that global inflationary pressures would persist.
Investors are now focusing on next week’s U.S. Federal Reserve meeting.
Forecasts point to interest rates remaining unchanged, though the probability of a rate hike in September stands at about 81%, according to the FedWatch tool.
The European Central Bank also kept interest rates unchanged, while leaving open the option of a hike at its next meeting.
As for other precious metals, silver fell to $57.29 per ounce.
Platinum fell to $1,579.49, while palladium dropped to $1,237.50 per ounce, amid expectations of continued market volatility.
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