Gold rose on Friday, supported by increased buying demand after its recent decline, but it remains on track to post losses for the fourth consecutive week. Gains were limited by growing expectations of U.S. interest rate hikes amid renewed inflation concerns driven by the Iran war.
Spot gold increased by 0.9% to $4,416.90 per ounce. It is expected to record a weekly loss of 1.6% after hitting its lowest level in four months at $4,097.99 earlier in the week.
U.S. gold futures for April delivery rose by 0.8% to $4,411.10.
Oil prices are trading above $110 per barrel, despite U.S. President Donald Trump extending a deadline for Iran to reopen the Strait of Hormuz after Tehran rejected a 15-point U.S. proposal to end the fighting.
Rising inflation has shifted expectations regarding the Federal Reserve’s policy toward the possibility of interest rate hikes, which typically negatively impacts gold by increasing the opportunity cost of holding a non-yielding asset.
According to the FedWatch tool by CME Group, traders have completely ruled out U.S. interest rate cuts in 2026, compared to earlier expectations of two cuts before the war began.
As for other precious metals, spot silver fell by 0.4% to $67.74 per ounce. Platinum rose by 0.5% to $1,835.60, while palladium gained 0.9% to $1,370.18.
Reuters
