Gold prices inched higher during thin European trading, supported by a softer dollar and easing concerns around energy-driven inflation pressures.
Spot gold rose 0.35% to $4,691.86 per ounce, while U.S. futures gained 0.83%, reflecting modest safe-haven demand.
The rebound follows a recent dip, with market sentiment shifting on expectations of potential diplomatic progress affecting global energy markets.
A weaker dollar has made gold more attractive to international buyers, reinforcing its role as a currency-sensitive asset.
Oil prices declined slightly but remained elevated, limiting inflation fears that had previously supported aggressive monetary tightening expectations.
Despite gold’s appeal as an inflation hedge, higher interest rate expectations continue to weigh on the metal’s upside potential.
Markets have largely ruled out near-term rate cuts, signaling a prolonged higher-rate environment that could cap further gains in bullion.
Other precious metals also advanced, with silver, platinum, and palladium posting gains amid broader commodity market stabilization.
