FX.co ★ XAU/USD, GOLD

XAU/USD Carsten Fritsch of Commerzbank observes Despite a strong oil rise, gold broke above USD 4,400 per ounce, and Fed rate estimates only slightly increased following poor US labour data. Over the course of four days, ETF investors added 14.5 tonnes, and global gold ETFs experienced 23.5 tonnes of inflows in July, mostly from Europe and Asia. Fritsch is still not convinced that gold can withstand rising oil prices for very long.This morning, the gold price rose above the USD 4,400 per troy ounce mark for the first time since early June. Interest rate forecasts have only marginally increased despite the higher oil price, and they are still lower than they were prior to Friday's dismal US employment market statistics. Investors in ETFs are boosting gold. Over the past four trading days, inflows into gold ETFs have totalled 14.5 tonnes, according to data from Bloomberg. We are sceptical of the current price increase since it is unclear that interest rate expectations would consistently separate from rising oil costs. As oil prices climb, the price of gold declines from its two-month high of $4,435.40. Oil prices have increased due to increased uncertainty surrounding Hormuz's reopening. Investors turn their attention to the July US CPI report. During Tuesday's European trading session, the price of gold (XAU/USD) is down 0.26% at about $4,380. Due to increased uncertainty surrounding the reopening of the Strait of Hormuz, a crucial route to nearly 20% of the world's energy supply, oil prices have increased further, causing the precious metal to drop from its two-month high of $4,435 earlier in the day.