Spot gold fell 0.4pc to $1,808.67 per ounce by 1:33 p.m. EDT (1733 GMT) after touching its highest level since Aug. 4. U.S. gold futures settled down 0.4pc at $1,812.2
Brent futures rose $1.63, or 2.3pc, to settle at $72.70 a barrel, while U.S. West Texas Intermediate (WTI) crude rose $1.32, or 2.0pc, to settle at $68.74
"I see two things happening," said Mike Zigmont, head of research and trading at Harvest Volatility Management in New York. "I see a reflexive dip-buying validation and I see the market embracing a dovish Fed"
Energy stocks were supported by higher oil prices on worries about supply disruption in Gulf of Mexico as Tropical Storm Ida advanced, while gold stocks got a boost from higher bullion prices
The Toronto Stock Exchange's S&P/TSX composite index fell 83.17 points, or 0.4pc, to 20,504.15 points, after ending at a new closing high on Wednesday.
Brent crude oil futures were up 92 cents, or 1.2pc, at $75.66 a barrel by 12:05 ET (1605 GMT), having traded as high as $75.74. U.S. West Texas Intermediate (WTI) crude oil futures were up 90 cents, or 1.3pc, at $73.29 a barrel.
The pan-European STOXX 600 index rallied 1.1pc to hit a record high of 461.75, and marked a 1.5pc weekly rise - its biggest weekly gain since early May.
Spot gold rose 0.3pc to $1,781.77 per ounce by 12:48 pm EDT (1648 GMT), after jumping to $1,794.86, its highest level since June 18. U.S. gold futures gained 0.4pc to $1,782.90.
The metal was still up around 7pc for the April-June quarter, however - the fifth consecutive quarter of rising prices - after reaching an all-time peak of $10,747.50 on May 10.
Non-yielding gold, which is also seen as a safe investment during uncertain times, tends to fall out of favour among investors when interest rates rise.
Spot gold was little changed at $1,778.01 per ounce by 12:22 am EDT (1622 GMT), giving up some gains from earlier in the session as the dollar recouped initial declines.