Gold closes higher driven by relief in oil prices

Gold closed higher this Thursday (4), driven by the relief in oil prices. The drop in the commodity reduces inflationary concerns, weighing on the dollar and Treasury interest rates, while investors ponder developments in the conflicts in the Middle East.

On Comex, the metals division of the New York Stock Exchange (Nymex), gold for August closed up 0.85%, at US$4,505.00 per troy ounce, while silver for July advanced 0.38%, at US$73.971 per troy ounce.

Headlines of a ceasefire between Israel and Lebanon and new comments about a possible agreement between the US and Iran, coming from US President Donald Trump, "immediately" changed the tide in favor of precious metals, assesses TD Securities.

The investment bank, however, warns that the market remains fragile thanks to attacks from all sides and impasses in negotiations.

For Capital Economics, traders are also closely monitoring recent US data and clues about the Fed's (Federal Reserve) next step, amid fears of maintaining interest rates for longer or raising rates.

Oil crisis will stop interest rate cuts, says researcher | MARKET OPENING

"For now, it doesn't seem like a tightening has been decided and tomorrow's May payroll could change the narrative", he points out.

Today, San Francisco Fed President Mary Daly said inflation is the central bank's biggest concern right now, but added that monetary policy is well positioned to respond to shocks and warned against hasty action.

Among indicators, unemployment benefit claims rose above expectations in the US, but the unit cost of labor rose less than expected.

*With information from Dow Jones Newswires.

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Source: CNN