Gold prices rise amid weakening US dollar, falling oil prices

Global gold prices gained over 2% as geopolitical risks increased safe haven demand, oil prices fell and the US dollar weakened.

The spot price of gold traded at $4,370 with a 2.4% increase as of 1416GMT.

US gold futures contracts rose by 0.54% to $4,410.

The spot price of silver climbed over 4.5% to $66, in parallel with the rise in the precious metal.

Platinum and palladium prices also gained value.

Analysts stated that the drop in oil prices to a one-week low and the easing of the US dollar index from a seven-week high drove the rise in gold prices.

They noted a strong inverse correlation between gold and energy prices due to inflationary pressures, adding that the decline in energy prices eased pressure on the gold market.

Experts also mentioned that the correction of the overreaction in US 10-year bond yields supported gold, although high inflation and interest rates could limit short-term upward potential.

Investors continued to evaluate the Fed's decision on Wednesday to raise interest rates to the 3.75%-4% range and its policy signals for the upcoming period.

The Bank of England kept interest rates steady amid the global interest rate environment, while the Bank of Japan is expected to raise rates to a 31-year high on Friday and signal an increase in borrowing costs.

Meanwhile, the price of Brent crude oil futures fell by 2.8% to $102.86 per barrel as of 1430GMT.

West Texas Intermediate crude oil also found buyers at $100.62 per barrel with a 1.77% decrease.