Gold rises for third straight day amid oil decline

Gold prices continued to rise on August 5. New York futures rose 1.7% to $4,224 per troy ounce. Since the beginning of the week, the precious metal has gained about 4.5%.

The rise in quotations was supported by signs of diplomatic progress in the Middle East. Expectations of a possible easing of tensions led to lower oil prices and reduced fears of further inflation acceleration.

The yield on ten-year US government bonds fell to 4.603% compared to a recent high of 4.747%. Lower rates support gold, as the metal does not generate interest income and becomes more attractive amid cheaper bond borrowing.

Market participants assessed the probability of a rate hike by the US Federal Reserve in September at about 57% versus 67% earlier. The previous day, gold futures ended trading up 1.5% at $4,095.40 per ounce. Investors are now awaiting new US labor market statistics, which could influence further Fed decisions.

It was previously reported that global oil prices on Wednesday, August 5, are falling for the third consecutive trading session.

Based on materials from: The Wall Street Journal, Barron's