.jpg)
Gold Prices Slip Amid Iran Uncertainty and Weak Weekly Outlook
Gold prices edged lower during early Asian trading on Friday and were on track for a weak weekly close as investors remained cautious over the ongoing Iran conflict and its potential impact on interest rates.
Spot gold fell 0.2% to $4,532.95 per ounce at 07:18 GMT, while gold futures also declined 0.2% to $4,533.90 per ounce.
Despite sharp market fluctuations throughout the week, spot gold was set to post a weekly decline of around 0.2%. Investor sentiment continued to shift amid mixed signals from the United States and Iran regarding ongoing negotiations. Optimism briefly improved after U.S. President Donald Trump delayed a potential military strike on Iran, while reports suggested that a final draft peace agreement had been reached.
However, Trump warned that military action could still happen if Tehran refused to accept the proposed agreement, with Iran’s nuclear program remaining the key point of contention.
U.S. officials also criticized Tehran’s plan to impose transit fees through the Strait of Hormuz. Limited oil flows through the crucial shipping route continued to keep crude oil prices elevated.
The conflict showed little sign of ending anytime soon, leaving markets concerned about prolonged disruptions to global oil supplies and the broader impact on inflation.
U.S. inflation has surged over the past two months due to rising energy prices, fueling speculation that the Federal Reserve may be forced to raise interest rates later this year.
Minutes from the Fed’s late-April meeting revealed growing support among policymakers for additional rate hikes, a scenario generally viewed as negative for gold and other non-yielding assets.
Other precious metals also moved lower on Friday and appeared headed for weak weekly performances. Spot platinum slipped 0.2% to $1,967.98 per ounce, while spot silver declined 0.2% to $76.5145 per ounce.