Gold rises on lower crude, dollar

Spot gold was up 0.7% at $4,461.09 per ounce

Gold prices rose on Thursday, supported by lower crude ​oil prices and a weaker dollar, as investors ⁠assessed renewed expectations for a resolution to the US war with Iran.

Spot gold was up 0.7% at $4,461.09 per ounce, as of 0218 GMT. ‌U.S. gold futures for August delivery added 0.5% to $4,487.90.

The dollar eased, making dollar-priced bullion more affordable for holders ‌of other currencies.

Gold’s gains are still very much at ‌the ⁠mercy of oil and the dollar. It only ⁠moves higher when they pull back, making it highly dependent on positive U.S.-Iran headlines for any sustained momentum, said Tim Waterer, chief market analyst at KCM Trade.

The Republican-led U.S. House of Representatives approved ‌a resolution on Wednesday to block U.S. President Donald ​Trump from continuing the war against Iran, reflecting growing concern among members of his party about the three-month-old ⁠war.

Higher oil prices can accelerate inflation and keep interest rates higher for longer. While gold is seen as a hedge against inflation, higher rates tend to weigh on the non-yielding metal.

New York Federal Reserve President John Williams noted that he does not expect upside risks to inflation caused by the war in ‌the Middle East to be long-lasting and reiterated there was no need ​at this time to change U.S. monetary policy.

I don’t think we’ve seen the end of the ⁠bull run, but it is clearly time for a shakeout in ⁠general. So, I anticipate choppy trade as we head into the year end, with a slight upwards bias of ‌around $5,000, said Matt Simpson, a senior analyst at StoneX.