Gold at weekly high as oil prices fall

Gold rose to its highest level in a week on Thursday, positioning itself for its first weekly gain in four weeks, supported by falling oil prices that eased concerns over persistent inflationary pressures, although a stronger dollar limited the extent of the rally.

Spot gold climbed 0.3% to $4,352.39 per ounce after hitting its highest level since September 11 earlier in the session. The metal has gained 0.2% so far this week.

Chris Gaffney, head of global markets at Everbank, said that the decline in oil prices is helping to alleviate inflationary pressures, as oil had been the primary driver of overall inflation.

Oil prices fell for a third consecutive day, as the impact of easing concerns over disruptions to Saudi supply outweighed worries about a widening conflict in the Middle East.

The U.S. dollar rose to its highest level in more than seven weeks, making gold, priced in the American currency, more expensive for holders of other currencies.