Key Takeaways

• Gold extends losses: Spot gold fell 1.8% to $4,134.86 per ounce, while gold futures slipped 2.2% to $4,152.25.
• Third consecutive weekly decline: On track for a 2% weekly fall despite a strong start to the week on Iran peace deal optimism.
• Fed hawkishness overwhelms: Nine of 19 Fed officials see at least one 2026 rate hike, reinforcing higher-for-longer expectations.
• Warsh’s hawkish interpretation: Chair Kevin Warsh’s comments were read as decidedly hawkish, boosting yields and the dollar.
• Dollar at 13-month high: The DXY surged 0.8% Thursday to its strongest level since May 2025, remaining largely unchanged in Asian hours.
• 80%+ year-end hike probability: Futures markets have dramatically repriced rate hike expectations.
• Geneva talks suspended: Switzerland confirmed final accord talks won’t take place Friday, with VP Vance reportedly halting the planned negotiations.
• Deal durability questioned: The suspension raises doubts about the interim agreement’s staying power.
• Oil rebounds, adding inflation worries: Crude’s bounce reignited some inflation concerns even as the broader Hormuz reopening narrative continues.
• Silver falls 2.5%: To $64.09 per ounce.
• Platinum slips 1.4%: To $1,674.51 per ounce.
• Copper declines: LME copper fell 0.9% to $13,582.33 per ton; U.S. copper futures dropped 1%.

Gold prices extended losses in Asian trading on Friday and were on track for a third consecutive weekly decline, as a stronger U.S. dollar and the Federal Reserve’s hawkish policy outlook outweighed support from an interim peace agreement between Washington and Tehran.

Spot gold fell 1.8% to $4,134.86 an ounce by 02:40 ET (06:40 GMT). U.S. gold futures for August slipped 2.2% to $4,152.25.

Gold was set for a 2% weekly fall. The precious metal had risen sharply at the start of the week on U.S.-Iran peace deal optimism, but has come under pressure following the Federal Reserve’s latest policy meeting.

Fed’s Hawkish Shock Sends Dollar to 13-Month High

Nine of the Fed’s 19 policymakers expect at least one rate increase later this year, reinforcing expectations that borrowing costs could remain elevated for longer.

The Fed left interest rates unchanged on Wednesday, but comments from Chair Kevin Warsh were interpreted by markets as decidedly hawkish, boosting Treasury yields and lifting the U.S. dollar to its strongest level in more than a year.

The U.S. Dollar Index was largely unchanged during Asian hours after surging 0.8% on Thursday — to its highest level since May 2025.

A firmer greenback makes dollar-denominated bullion more expensive for overseas buyers, while higher interest rates increase the opportunity cost of holding non-yielding assets such as gold. Futures markets have priced in more than an 80% chance of a year-end rate hike.

Geneva Talks Suspension Adds to the Pressure

Gold’s weakness was further amplified after Switzerland announced that talks on the final accord to end the Middle East conflict would not take place on Friday.

U.S. Vice President J.D. Vance reportedly suspended planned Geneva talks, raising questions over the durability of the recently announced interim agreement.

The agreement is expected to facilitate the reopening of shipping through the Strait of Hormuz and has triggered a steep decline in oil prices this week. Oil prices rebounded on Friday, again sparking some inflation worries.

Among other precious metals, silver prices fell 2.5% to $64.09 per ounce, while platinum slipped 1.4% to $1,674.51 per ounce.

Benchmark copper futures on the London Metal Exchange slid 0.9% to $13,582.33 a ton, while U.S. copper futures fell 1% to $6.30 a pound.