Gold prices edged up slightly on Friday, recovering from earlier losses of over 1%. The rebound came amid hopes for a breakthrough in ending the war with Iran after Tehran submitted a new negotiation proposal, which eased some inflationary concerns.
اضافة اعلان
Market Performance
Spot Gold: Rose to $4,627.63 per ounce by 17:50 GMT, after hitting a session low of $4,559.48. Despite the daily gain, the precious metal is still on track for a weekly loss of 1.7%.
U.S. Gold Futures: June delivery rose 0.4%, settling at $4,649.60.
Other Metals: Spot Silver surged 3% to $75.91 per ounce, Platinum gained 0.3% to $1,992.05, and Palladium rose 0.6% to $1,532.79.
Expert Analysis
"Positive news regarding negotiations to end the war with Iran helped gold prices recover from early morning losses," said Chris Gaffney, President of World Markets at EverBank. He added that an end to the conflict could prompt the Federal Open Market Committee (FOMC) to cut interest rates again, potentially weakening the dollar and further boosting gold prices.
The U.S. Dollar eased against a basket of major currencies, making dollar-denominated gold more affordable for holders of other currencies.
Geopolitical Context
Iranian state media and a Pakistani official confirmed that Iran submitted its latest negotiation proposal to the United States. While oil prices fell on the news, they remain on path for weekly gains, fueling fears of a global economic slowdown and persistent inflation due to high fuel costs.
Rising costs may pressure central banks to maintain high interest rates for longer. This typically weighs on non-yielding assets like gold, as investors pivot toward alternatives such as Treasury bonds. The Federal Reserve kept interest rates unchanged this week.
Notably, gold prices have generally declined since the start of the Iran war in late February, despite the metal's traditional role as a hedge against geopolitical instability.
(Source: Reuters)
