Gold prices slipped modestly during Asian trading on Friday but remained on track to post a weekly increase, underpinned by a fragile ceasefire between the United States and Iran. Investors stayed cautious, however, ahead of expected diplomatic talks over the weekend.
Spot gold fell 0.2% to $4,752.29 per ounce as of 02:31 ET (06:31 GMT), holding just below recent three-week highs. U.S. gold futures declined 0.9% to $4,776.67.
Even with the pullback, bullion is set to rise around 1.5% on the week, marking a third consecutive weekly gain.
Markets watch U.S.-Iran talks as ceasefire shows strain
The temporary ceasefire announced earlier in the week between Washington and Tehran helped calm global markets, although signs of tension persist due to ongoing military activity in Lebanon.
The Strait of Hormuz, a vital channel for global oil shipments, remains largely restricted. U.S. President Donald Trump criticized Iran for doing a “poor job” of allowing energy supplies to flow.
Attention has now shifted to anticipated U.S.-Iran discussions over the weekend, which are expected to shed more light on the geopolitical outlook.
However, Iranian media reported that Tehran denied sending a delegation to Islamabad for negotiations with U.S. officials, adding that talks will remain on hold unless Washington fulfills its commitments regarding a ceasefire in Lebanon and Israeli strikes come to an end.
Inflation data in focus as dollar weakens
Oil prices have pulled back this week after previously surging close to $120 per barrel following threats from President Trump to take action against Iran.
Higher energy prices have fueled concerns about global inflation, complicating the outlook for central banks and raising expectations that interest rates could stay elevated for longer.
The U.S. Dollar Index edged up 0.1% on the day but remains on track to fall more than 1% over the week. A softer dollar tends to support gold by making it more affordable for buyers outside the United States.
Investors are now awaiting the release of U.S. consumer price index data later on Friday, which could provide further direction for Federal Reserve policy.
Economists expect headline inflation to accelerate, largely driven by higher energy costs tied to Middle East tensions.
Silver rose 0.3% to $75.54 per ounce, while platinum declined 1.8% to $2,065.97 per ounce.
Copper also advanced, with benchmark futures on the London Metal Exchange rising 0.4% to $12,743.33 per tonne, and U.S. copper futures gaining 0.6% to $5.79 per pound.
Leave a Reply