Gold prices declined during Friday’s Asian trading session, reflecting a modest boost in risk appetite following remarks from the White House indicating that a U.S. strike on Iran, linked to the Israel conflict, is not imminent.
The precious metal remained under pressure after hawkish comments from the Federal Reserve earlier in the week supported the strength of the U.S. dollar. Although the dollar eased slightly on Friday, it was still poised for gains over the week. The firm dollar also capped a recent surge in platinum prices, which had climbed to a more than four-year high.
Spot gold slipped 0.5% to $3,353.17 per ounce, while August gold futures fell 1.1% to $3,369.40 an ounce by 00:58 ET (04:58 GMT).
Improved Risk Sentiment Following Trump’s Iran Decision Delay
Gold’s decline coincided with increased risk appetite in broader markets, triggered by the White House announcement that President Donald Trump will take two weeks to decide on U.S. involvement in the Israel-Iran conflict. This helped alleviate fears of an imminent U.S. military strike after reports earlier in the week suggested preparations for such action.
However, the “two weeks” timeframe has previously been used by Trump for several critical policy decisions, only for deadlines to be postponed indefinitely, leaving some uncertainty in the markets. For example, eight weeks ago, Trump also used the same timeframe when questioned about his trust in Russian President Vladimir Putin.
Despite ongoing exchanges of attacks between Israel and Iran, now stretching into an eighth day, the delay in immediate U.S. action boosted some investor confidence.
Other Metals Weaken Amid Dollar Strength and Fed Signals
Silver futures dropped 1.6% to $35.765 per ounce. Copper also declined, with London Metal Exchange copper futures down 0.3% to $9,602.05 per ton, and U.S. copper futures slipping 0.9% to $4.7650 per pound.
Platinum prices retreated 1.5% to $1,282.75 per ounce, pulling back from the recent four-year peak reached in the previous session. Despite this, platinum is on track for its third consecutive week of gains, up 5.8% amid strong demand and tightening supply fundamentals highlighted in a recent industry report. The report spurred a speculative rally, although some analysts remain cautious about the sustainability of the price surge.
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