The increase of oil prices curbed risk-aversion demand, and XAUUSD is expected to be prone to fluctuation As crude oil prices increased greatly and the inflation was expected to rise, XAUUSD was capped. It declined to the US$445 for some time. Concerns on the tension in the Middle East raised energy costs, but it strengthened the expectation of deflation policy, lowering the attraction of gold. In a short term, XAUUSD is still in the downward channel. Investors should focus on geopolitical tension and monetary policies.