Gold prices advanced more than 2% during Asian trading on Friday, supported by a softer U.S. dollar and signs that geopolitical tensions may be easing after Donald Trump indicated that talks with Iran were making progress.
Spot gold rose 2.1% to $4,467.32 per ounce as of 02:41 ET (06:41 GMT), while U.S. gold futures climbed 1.1% to $4,457.6 per ounce.
Even with Friday’s gain, bullion remained under pressure for the week after dropping nearly 3% in the previous session, leaving prices on track for a weekly decline of around 0.5%.
Trump halts strikes on Iranian energy infrastructure
President Trump said on Thursday that the United States would suspend attacks on Iran’s energy facilities for 10 days after a request from Tehran, adding that negotiations were “going very well.”
The pause in military action reduced immediate demand for safe-haven assets, although it also weighed on the U.S. dollar, offering support to gold, which typically moves inversely to the greenback.
The U.S. Dollar Index slipped 0.1% after posting gains for three straight days.
Gold markets have experienced significant swings in recent weeks as the conflict in the Middle East disrupted the metal’s usual safe-haven behavior.
Earlier this month, a surge in oil prices sparked by supply disruptions tied to the Iran conflict raised concerns about a potential rise in global inflation.
Higher energy costs could keep inflation elevated and reinforce expectations that central banks will keep interest rates at higher levels for longer.
Silver and platinum rally
Oil prices edged lower on Friday and were on course for a weekly drop as diplomatic discussions aimed at reducing tensions gained momentum.
However, lingering uncertainty over the direction of the conflict and mixed signals about efforts to end the fighting continued to leave investors cautious.
Among other precious metals, silver climbed 2.6% to $68.75 per ounce, while platinum surged 3.5% to $1,901.60 per ounce.
Benchmark copper futures on the London Metal Exchange increased 1% to $12,254.95 per ton, while U.S. copper futures rose 1.1% to $5.53 per pound.
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