Gold Rises on Sliding Oil Prices and Rate-Hike Hesitation

Gold prices moved higher on Monday, buoyed by declining oil prices that have eased inflation concerns. Traders are now more optimistic that the Federal Reserve might pause its rate-hiking cycle, as lower energy costs reduce pressure on overall inflation. Gold traded above $4,200 per ounce, marking a 1.3% increase over the past week. The drop in Brent crude to around $103 a barrel has sparked speculation about potential easing in global energy supply tensions. Analysts note that the recent geopolitical developments, including claims of an energy ceasefire between Russia and Ukraine, have contributed to the downward trend in oil prices. While details remain scarce, the market is interpreting these signals as a sign of reduced supply-side pressures. This shift has prompted investors to reconsider their exposure to commodities and equities, with gold emerging as a preferred hedge against economic uncertainty. The Fed’s next policy decision will be closely watched, as it could influence the trajectory of both interest rates and asset prices in the coming months.