Gold Prices Dip as Markets Await Key US-Iran Talks
Gold prices moved slightly lower during Asian trading on Friday, but remained on track for a weekly gain. The metal continued to find support from a fragile ceasefire between the United States and Iran, while investors stayed cautious ahead of critical negotiations scheduled for the weekend.
Gold Holds Near Recent Highs
Spot gold declined 0.4% to $4,744.50 per ounce, hovering just below its recent three-week highs. Meanwhile, U.S. gold futures dropped 1% to $4,764.67.
Despite the pullback, gold was still set to rise approximately 1.5% for the week, marking its third consecutive weekly advance.
Ceasefire Supports Sentiment but Risks Remain
The temporary ceasefire announced earlier this week helped stabilize global market sentiment. However, signs of strain have already emerged, with continued military activity reported in Lebanon.
At the same time, the Strait of Hormuz—one of the most important routes for global oil supply—remains largely restricted. President Donald Trump criticized Iran for failing to ensure adequate energy flows, adding to geopolitical tensions.
Oil Prices and Inflation Concerns in Focus
Crude oil prices pulled back this week after previously surging close to $120 per barrel, driven by escalating tensions and threats against Iran.
Elevated energy prices have fueled global inflation concerns, complicating the outlook for central banks and increasing the likelihood that interest rates could remain higher for longer.
US Dollar Weakness Supports Gold
Movements in the U.S. dollar also supported gold prices throughout the week. Although the US Dollar Index rose 0.1% on Friday, it remained on track for a weekly decline of more than 1%.
The softer dollar reduced costs for international buyers, boosting demand for gold and contributing to its recent upward trend.
Markets Await Key US CPI Data
Investor attention is now focused on the upcoming U.S. Consumer Price Index (CPI) report, expected later on Friday. The data could provide important signals regarding the Federal Reserve’s future monetary policy.
Economists anticipate a rise in headline inflation, largely driven by higher energy prices linked to ongoing Middle East tensions.
Precious Metals Show Mixed Performance
Other precious metals showed mixed movement. Silver remained largely unchanged at $75.35 per ounce, while platinum declined 1.8% to $2,067.60 per ounce.
