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Gold rises with oil as geopolitical risk overwhelms rate headwinds
Gold trades higher, extending a rebound that has seen bullion decouple from the recent market narrative where rising oil prices translated almost mechanically into lower precious metal prices. In recent weeks, higher crude prices, driven by the war in the Middle East and the closure of the Strait of Hormuz, reinforced inflation concerns, lifted bond yields, supported the dollar and in the process reduced the appeal of non-yielding assets such as gold. That relationship is now showing some signs of breaking down. The latest escalation in the geopolitical outlook has prompted a shift in market thinking. Crude oil ... (full story)