Gold Gains After Trump Signals Progress With Iran, Still Heads for Weekly Loss
Gold prices edged higher in Asian trading on Friday, supported by a slightly weaker U.S. dollar and easing geopolitical tensions after Donald Trump signaled progress in negotiations with Iran.
Spot gold rose 1.2% to $4,429.32 per ounce as of 22:43 ET (02:43 GMT), while U.S. gold futures climbed 1.1% to $4,457.60 per ounce. Despite the rebound, gold remains on track to post a weekly decline of around 1.3%, following a sharp 3% drop in the previous session.
Trump-Iran Developments Weigh on Safe-Haven Demand
On Thursday, Trump announced a temporary 10-day halt to strikes on Iran’s energy infrastructure at Tehran’s request, adding that negotiations are “going very well.”
This pause in hostilities has reduced immediate safe-haven demand. However, it has also put mild pressure on the U.S. dollar, offering support to gold prices, which typically move inversely to the greenback.
The US Dollar Index slipped 0.1% after posting gains over the past three sessions.
Volatility Persists Amid Middle East Tensions
Gold markets have experienced significant volatility in recent weeks, as ongoing Middle East tensions disrupt traditional safe-haven dynamics. Prices surged to record highs earlier this year before pulling back sharply over the past month.
Earlier this month, a spike in oil prices—triggered by supply disruptions linked to the Iran conflict—raised concerns about global inflation. Higher energy costs could keep inflation elevated and reinforce expectations that central banks will maintain higher interest rates for longer.
Outlook: Uncertainty Continues to Support Gold
While easing tensions between Washington and Tehran have capped gains, lingering uncertainty surrounding the conflict and its broader economic impact continues to provide underlying support for gold.