Market Overview
Gold prices were largely unchanged on Friday, with spot gold at $4,125.03 per ounce and gold futures slipping 0.1% to $4,135.67 per ounce as of 22:11 ET (02:11 GMT). The metal is down roughly 1.6% for the week, positioning it for a weekly loss.
Drivers
The stagnation follows a flare‑up in U.S.–Iran military actions. President Donald Trump announced the end of a cease‑fire with Iran and ordered additional strikes, prompting retaliatory measures from Tehran. The heightened tension pushed oil prices higher (light crude up 0.22%, crude oil up 0.28%), stoking fears of energy‑driven inflation.
Rate Outlook
Higher inflation expectations have led markets to increase bets on a Federal Reserve rate hike in 2026, as indicated by CME FedWatch. Elevated rates increase the opportunity cost of holding non‑yielding assets such as gold, contributing to the metal’s muted performance.
Other Precious Metals
Spot silver rose 0.5% to $60.255 per ounce on Friday but is down 4.1% for the week. Spot platinum increased 1.2% to $1,636.14 per ounce, yet it is down 0.4% weekly.
Currency and Index Movements
The U.S. dollar index steadied, slipping 0.28% after last week’s losses, while the Dow Jones Industrial Average fell 0.28%.
Outlook
With oil prices likely to remain elevated amid ongoing geopolitical uncertainty and the prospect of tighter monetary policy, gold and other non‑yielding precious metals may continue to face downward pressure.