Gold Prices Edge Lower
Gold prices slipped slightly on Friday and were on track for a weekly decline.
The pressure came as renewed U.S.-Iran military action raised concerns about higher inflation and interest rates.
Gold Heads for Weekly Loss
Spot gold fell 0.2% to $4,115.01 an ounce. Gold futures declined 0.4% to $4,123.90 an ounce by 02:15 ET.
For the week, spot gold was down around 1.6%.
Iran Tensions Pressure Gold
Gold came under pressure after the United States launched a series of attacks against Iran this week.
U.S. President Donald Trump said the ceasefire with Iran was over and ordered further strikes. Iran responded with retaliatory measures.
Although regional mediators were reportedly trying to protect a recent U.S.-Iran memorandum of understanding, the outlook for peace in the Middle East remained uncertain.
Oil Prices Raise Inflation Concerns
The escalation pushed oil prices higher, increasing fears of energy-driven inflation.
Higher energy costs could make the Federal Reserve more cautious about cutting interest rates. Markets also increased expectations for a possible Fed rate hike in 2026, according to CME FedWatch.
Higher Rates Weigh on Gold
Higher interest rates are usually negative for gold.
Gold does not pay interest, so rising rates increase the opportunity cost of holding the metal compared with interest-bearing assets such as bonds.
Safe-Haven Demand Remains Limited
ANZ analysts said gold found some support from expectations that the Middle East conflict may not escalate further.
However, gold has struggled to perform strongly as a safe-haven asset during the U.S.-Iran conflict. Inflation concerns and rate uncertainty have outweighed its traditional defensive appeal.
Silver and Platinum Also Struggle
Other precious metals also showed mixed performance this week.
Spot silver rose 0.4% to $60.1805 an ounce on Friday, but remained down more than 4% for the week.
Spot platinum gained 1.2% to $1,636.14 an ounce on Friday. For the week, platinum performed better than gold and silver, falling only 0.3%.
