Gold Prices Rebound as Dollar Weakens
Gold prices surged more than 2% during Asian trading on Friday, supported by a softer U.S. dollar and easing geopolitical tensions after Donald Trump signaled progress in negotiations with Iran.
Spot gold rose 2.1% to $4,467.32 per ounce, while U.S. gold futures increased 1.1% to $4,457.6 per ounce.
Weekly Performance Remains Negative
Despite the rebound, gold remains under pressure on a weekly basis. The metal dropped nearly 3% in the previous session and is still on track to record a 0.5% weekly decline.
Trump Signals Pause in Iran Conflict
Trump announced a temporary 10-day pause in attacks on Iran’s energy infrastructure, stating that negotiations were progressing positively. This development helped ease immediate geopolitical fears.
The reduced tension lowered safe-haven demand but also weakened the U.S. dollar, which in turn supported gold prices.
Dollar Weakness Supports Bullion
The U.S. Dollar Index slipped by 0.1% after three consecutive days of gains. Since gold typically moves inversely to the dollar, the weaker currency provided a boost to bullion prices.
Ongoing Volatility in Gold Markets
Gold has experienced heightened volatility in recent weeks as the Middle East conflict disrupted traditional market dynamics. Investors have struggled to balance safe-haven demand with shifting expectations around global growth and inflation.
Inflation Concerns Remain in Focus
Earlier spikes in oil prices—triggered by supply disruptions linked to the Iran conflict—have raised concerns about persistent inflation.
Higher energy costs could keep inflation elevated, increasing the likelihood that central banks will maintain higher interest rates for longer periods.
Silver, Platinum and Copper Move Higher
Other precious metals also posted gains. Silver climbed 2.6% to $68.75 per ounce, while platinum advanced 3.5% to $1,901.60 per ounce.
Industrial metals followed a similar trend, with copper futures on the London Metal Exchange rising 1% to $12,254.95 per ton. U.S. copper futures also gained 1.1%, reaching $5.53 per pound.
Oil Prices Edge Lower Amid Talks
Oil prices declined slightly on Friday and were set for a weekly loss as de-escalation talks continued. However, uncertainty surrounding the conflict’s outcome and mixed signals from negotiations kept investors cautious.
Market Outlook Remains Uncertain
Although recent diplomatic developments have provided some relief, markets remain sensitive to geopolitical headlines. Ongoing uncertainty around the Iran conflict continues to influence investor sentiment across commodities.
