Gold Set For Weekly Loss As Oil And U.S. Dollar Rise

(MENAFN- Yolo Wire) The price of gold is headed for a weekly loss as ongoing tensions in the Middle East spark a rise in both crude oil prices and the value of the U.S. dollar.

This loss in gold's price comes after five consecutive weekly gains for the precious metal. Gold is currently trading at $4,723.04 U.S. per ounce.

Gold has declined in recent days as worries grow about an energy-fueled spike in inflation and higher-for-longer interest rates.

Over the past week, the spot price of gold fell 2.6% as the price of Brent crude oil rose above $106 U.S. per barrel and the U.S. dollar strengthened.

Oil is tracking for its biggest weekly increase since early March amid ongoing skirmishes in the Strait of Hormuz, a Middle East waterway where 20% of the world's crude flows.

This has led to rising concerns that price pressures could intensify, leading central banks around the world to increase interest rates.

As a non-yielding asset, gold does best when interest rates are low. Also, a rising U.S. dollar competes with gold as a safe haven asset during times of strife and uncertainty.

Gold's (TVC: $GOLD) price is down from an all-time high of $5,589.38 U.S. per ounce reached on Jan. 28 of this year.

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