Gold Rebounds With Focus on Oil Prices and U.S. Inflation Figures

Gold futures in New York climbed 0.3% to $4,422.40 a troy ounce at 1306 GMT after crude oil dropped more than 2.5%, pulling back some inflationary pressure that had weighed on the precious metal. Despite the intraday bounce, gold remains on course for a weekly decline as traders assess the interplay between energy costs and upcoming U.S. inflation data.

The pullback in oil prices provided temporary relief for gold, which often moves inversely to inflation expectations. Higher oil prices typically fuel broader inflation concerns, prompting central banks to maintain tighter monetary policy—a headwind for non-yielding assets like gold. The 2.5% decline in crude eased that dynamic, allowing gold to recover from earlier session lows.

The metal's weekly trajectory remains negative even with Monday's rebound, signaling persistent headwinds. Traders are positioning ahead of fresh U.S. inflation figures that could determine the Federal Reserve's next policy stance and reshape gold's near-term outlook.