• Gold rises after Oil prices cascade due to Israel’s decision not to target Iranian Oil facilities in its recent bombing raid. 
• Cheaper Oil is likely to keep global inflation capped, leading to lower interest rates, which is positive for Gold.  
• XAU/USD trades up to the top of a mini range, consolidating within a longer-term bullish trend.  

Gold (XAU/USD) pushes higher into the $2,750s on Tuesday, at the top of the previous week’s mini range. The precious metal gains a backwind from falling Oil prices,  which declined 6.0% (Brent) on Monday due to the news that Israel only attacked military targets in Iran, leaving its Oil and nuclear installations unaffected. 

Cheaper Oil is likely to help maintain lower levels of inflation globally as it reduces fuel and energy costs – a major factor in production, transportation and heating. This, in turn, is likely to accelerate the downward progression of global interest rates, boosting Gold’s attractiveness to investors as a non-interest-paying asset. 

Gold also remains underpinned by safe-haven flows due to the ongoing conflict in the Middle East and the escalation of the war in Ukraine following the news that North Korea has sent troops to Russia.