Gold prices declined on Friday and were set for a sharp weekly drop, as escalating uncertainty around the U.S.-Iran conflict pushed investors toward the dollar.
Spot gold fell 0.5% to $4,672.22 an ounce by 02:27 ET (06:27 GMT), while gold futures slipped 0.8% to $4,686.89 per ounce. For the week, spot prices were on track to fall roughly 3%, weighed down by a stronger dollar amid concerns that the Iran conflict could fuel inflation.
The dollar was heading for its strongest weekly advance since early March.
Precious Metals Retreat Broadly
Other precious metals also moved lower under pressure from the firmer greenback. Spot silver dropped 1.2% to $74.483 per ounce and was set to record a weekly loss of nearly 8%.
Spot platinum declined 1% to $1,992.72 per ounce, bringing its weekly drop to about 5.4%.
Both silver and platinum had recently outpaced gold, leaving them vulnerable to profit-taking. Their recent strength had been supported by optimism over industrial demand, as well as expectations of a widening supply deficit in the silver market in 2026.
Rate Fears Weigh on Metals
Markets are increasingly concerned that inflation linked to the Iran conflict could prompt major central banks to adopt more aggressive monetary tightening and raise interest rates—typically a negative backdrop for metals.
Higher interest rates reduce the appeal of non-yielding assets like gold. At the same time, oil prices have surged this week, reinforcing concerns about energy-driven inflation.
Geopolitical Risks Remain Elevated
Despite the United States extending a ceasefire with Iran indefinitely earlier this week, tensions between the two sides remain high. Iran has continued to restrict traffic through the Strait of Hormuz, while the U.S. maintains its naval blockade.
U.S. President Donald Trump said on Thursday that he was in no rush to reach a peace agreement with Iran and had instructed the military to respond to any Iranian vessels attempting to lay mines in the strait.
Separately, Iran released footage it said showed its forces boarding a vessel and highlighted its fast-boat capabilities for operations in the Strait of Hormuz, underscoring the ongoing risks to global shipping and energy markets.
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