Brent crude oil retreated from levels above $100 a barrel on Friday, while gold prices edged higher as markets navigated conflicting signals from geopolitical tensions and monetary policy expectations.
The divergent moves highlight a shift in risk appetite, with energy assets cooling after recent gains driven by supply disruption fears, while safe-haven demand for gold persisted.
The pullback in Brent follows a period of sharp advances fueled by escalating conflict in the Middle East, which had heightened concerns over potential supply bottlenecks.
However, the retreat suggests that immediate supply fears may be moderating or that traders are taking profits after the recent rally.
Meanwhile, gold’s modest gain reflects continued investor caution, as the precious metal balances its role as an inflation hedge against its traditional safe-haven status.
Investors are closely monitoring developments in the Middle East, where ongoing conflict continues to pose risks to global energy supplies.