Gold extends gains on lower oil and softer dollar
Published On 05 Aug, 2026
Spot gold was up 1.3% at $4,127.04 per ounce, as of 0253 GMT. U.S. gold futures rose 0.8% to $4,184.40.
The U.S. dollar remained subdued, making greenback-priced metals more attractive to holders of other currencies.
Oil steadied after steep falls in the previous two sessions. Lower oil prices can ease inflation concerns that often feed expectations of higher interest rates.
Qatar said mediators were making progress in efforts to end the U.S.-Iran war, although Tehran has denied U.S. President Donald Trump’s assertion that talks are already underway.
“Gold’s relation with oil is still intact as oil prices have a tremendous impact on the global economy in terms of inflationary pressure. If we get a very clear roadmap to further de-escalation in tensions, gold prices could move higher,” said Kelvin Wong, a senior market analyst at OANDA.
Traders are now pricing in a 59% probability of a Federal Reserve interest rate hike at the central bank’s September 15-16 meeting, down from 67% a day earlier.