Gold Prices Edge Higher as Dollar Weakens
Gold prices recovered slightly on Friday, erasing earlier losses as a weaker U.S. dollar supported the precious metal. Despite the modest rebound, gold remains close to one-month lows following a weak performance in April.
Spot gold rose 0.7% to $4,653.35 per ounce, while gold futures gained 0.8% to $4,665.69 per ounce. Trading activity remained subdued due to market holidays across much of Europe and Asia.
Gold Extends Losses for Second Month
Gold prices declined about 1% in April, adding to a sharp nearly 12% drop recorded in March. The losses were largely driven by rising inflation concerns linked to geopolitical tensions, particularly the Iran war February 2026, which pushed investors toward the U.S. dollar.
At the same time, a surge in oil prices weighed on gold, as disruptions to global crude supply further fueled inflation expectations.
Central Bank Signals Pressure Precious Metals
Precious metals faced additional pressure from hawkish signals by major central banks. The Federal Reserve highlighted concerns about energy-driven inflation, while the European Central Bank, Bank of England, and Bank of Japan all suggested the possibility of near-term interest rate hikes.
Higher interest rates tend to weigh on gold, as they increase the opportunity cost of holding non-yielding assets.
Other Precious Metals Show Mixed Performance
Other metals posted mixed results following April’s volatility. Silver rose 4.1% to $76.78 per ounce on Friday but still ended the month down about 2%. Platinum gained 1.4% to $2,022.50 per ounce after recording modest gains in the previous month.
U.S.-Iran Tensions Continue to Influence Markets
Ongoing tensions between the United States and Iran continue to shape market sentiment. Reports indicated that Donald Trump has been briefed on potential additional military actions, as diplomatic efforts between Washington and Tehran have stalled.
Iran’s Supreme Leader Mojtaba Khamenei stated that the country will maintain control over the Strait of Hormuz and protect its strategic interests.
The Strait of Hormuz remains a critical focal point in the conflict, with disruptions to the waterway affecting global energy markets.
Gold Lags Dollar Amid Geopolitical Uncertainty
Since the escalation of the Iran conflict, gold has underperformed relative to the U.S. dollar. While typically considered a safe-haven asset, gold demand has been overshadowed by rising inflation concerns and strong dollar flows driven by energy market disruptions.
