Gold prices edged lower in Asian trading on Friday, approaching their lowest level in nearly a month, as the ongoing ceasefire between Israel and Iran eased geopolitical tensions and reduced demand for the safe-haven metal. Meanwhile, investors turned their attention to upcoming U.S. inflation data, which could influence the Federal Reserve’s interest rate decisions.
Spot gold slipped 1% to $3,293.79 per ounce, marking its lowest since early June. August gold futures declined 1.2%, settling around $3,306.70 an ounce by early Friday (01:15 ET / 05:15 GMT). The metal is set to close the week with losses exceeding 2%, marking its second straight weekly decline and down nearly 6% from its late-April record high.
Middle East Ceasefire Remains Stable, Inflation Data on Horizon
The truce brokered by U.S. President Donald Trump between Israel and Iran appeared to hold through Thursday, diminishing concerns about regional conflicts and weakening gold’s traditional role as a refuge during crises.
Market participants are now focused on the release of May’s Personal Consumption Expenditures (PCE) price index—the Federal Reserve’s preferred inflation indicator—expected later Friday. Forecasts anticipate a 0.1% monthly rise in both headline and core PCE figures, translating to annual increases of 2.3% and 2.6% respectively, slightly above last year’s levels.
This follows Fed Chair Jerome Powell’s recent testimony to Congress, where he cautioned against premature interest rate cuts and highlighted that inflation pressures, especially those linked to tariffs, might be more persistent than anticipated.
In a sharp response, President Trump criticized Powell and indicated he is considering “three or four” candidates to replace him, with reports suggesting a potential nomination could come as early as September.
Commodity Prices Fall as Dollar Strengthens Slightly
The U.S. Dollar Index gained 0.1% during Asian trading but remained near its lowest point in over three years. A firmer dollar tends to make dollar-denominated commodities like gold more expensive for overseas buyers, dampening their demand.
Platinum futures dropped 1.3% to $1,392 per ounce, retreating from levels not seen in over a decade, though the metal still boasts a 32% gain for the month. Silver futures eased 0.6% to $36.38 an ounce.
Meanwhile, copper prices showed mixed movement: London Metal Exchange copper futures declined 0.2% to $9,891.15 per ton, while U.S. copper futures edged slightly higher, trading near $5.06 per pound.
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