Gold prices rose on Monday as lower oil prices eased inflation concerns ahead of the US Federal Reserve’s interest rate decision on Wednesday.
Spot gold gained 0.5% to $4,014.49 an ounce, while US gold futures for December delivery rose 0.5% to $4,028.40.
Gold recovered after falling 4% last week, its steepest weekly decline since June. Prices had also reached their lowest level since mid-July on Friday.
Oil prices fell as hopes of easing Middle East tensions reduced concerns over supply disruptions. Lower energy costs could ease inflationary pressure and reduce expectations of further interest rate increases, supporting gold prices.
The Federal Reserve is widely expected to leave interest rates unchanged. Investors will focus on its comments about inflation and the outlook for future rate decisions. Higher interest rates tend to weigh on gold because it does not pay interest.
US inflation data due on Thursday will provide further insight into price pressures. The European Central Bank and Bank of Japan are also scheduled to announce monetary policy decisions this week.
Elemental Royalty Corporation (NASDAQ:ELE, TSX:ELE) is a globally diverse, gold-focused portfolio featuring world-class royalties contributing to peer-leading revenue and strong growth.
