Gold prices dipped to their lowest levels in nearly four weeks during Asian trading on Friday, as a sustained ceasefire between Israel and Iran reduced demand for safe-haven assets. Meanwhile, investors turned their attention to upcoming U.S. inflation data that could influence the Federal Reserve’s next policy moves.
Spot gold dropped 1% to $3,293.79 an ounce — its weakest since June 2 — while August gold futures declined 1.2% to $3,306.70 per ounce by 01:15 ET (05:15 GMT).
The precious metal was on track for a weekly loss of over 2%, its second straight week in the red, and has now pulled back nearly 6% from its record highs set in late April.
Ceasefire Holds as Markets Eye Inflation Data
The truce between Israel and Iran, brokered by U.S. President Donald Trump, remained intact as of Thursday, reducing geopolitical tension in the Middle East and dampening gold’s appeal as a risk hedge.
Investors are now awaiting May’s Personal Consumption Expenditures (PCE) price index — the Federal Reserve’s preferred inflation metric — for fresh clues on the direction of interest rates.
Economists expect both headline and core PCE to rise 0.1% month-over-month. Yearly, headline PCE is forecast to increase 2.3%, while core PCE is expected to climb 2.6%, both higher than the figures from a year ago.
This comes after Fed Chair Jerome Powell cautioned lawmakers earlier in the week that cutting rates prematurely could be risky, especially given the potentially lasting inflationary impact of recent tariffs.
President Trump, continuing his criticism of Powell, said he is considering “three or four” candidates to replace him. A Wall Street Journal report noted that Trump may announce a successor as early as September.
Broader Metals Retreat as Dollar Strengthens
The U.S. Dollar Index inched up 0.1% during Asian trade, though it remained close to a three-year low. A stronger dollar typically weighs on demand for dollar-denominated commodities like gold by making them more expensive for international buyers.
Platinum futures fell 1.3% to $1,392.00 an ounce, retreating from their highest levels in over a decade. Despite the pullback, the metal remains up 32% for the month.
Silver futures declined 0.6% to $36.375 per ounce.
Copper prices were mixed. Benchmark futures on the London Metal Exchange slipped 0.2% to $9,891.15 a ton, while U.S. copper futures edged slightly higher to $5.06 per pound.
