Gold rises as lower oil prices ease inflation fears, ING says

Gold moved higher on Monday, driven by a drop in oil prices that dampened inflation worries, ING strategists Warren Patterson and Ewa Manthey noted. The decline in crude oil eased price pressure expectations, which in turn pressured the U.S. dollar and Treasury yields.

Lower energy costs reduce the urgency for aggressive monetary tightening, making non-yielding assets like gold more attractive. The precious metal often benefits when real yields fall or the greenback weakens.

The move underscores gold’s sensitivity to macro drivers, particularly inflation bets and interest rate expectations. ING’s commentary highlights the ongoing interplay between commodities, currencies, and bond markets.