Gold Gains for Second Day on Falling Oil, Easing Rate Fears

Gold extended its advance into a second day, with XAU/USD trading around $4,103 per troy ounce during Asian hours. The move comes as falling oil prices help cool inflation expectations, reducing the likelihood of further aggressive rate hikes from central banks.

Lower energy costs are seen as a moderating force on price pressures, which in turn supports non-yielding assets like gold by diminishing the opportunity cost of holding them relative to interest-bearing instruments.