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Gold prices rose in Asian trading on Friday, but the precious metal remained on track for a second consecutive weekly decline as concerns over energy-driven inflation from the U.S.–Israel conflict with Iran continued to weigh on sentiment.
By 01:14 ET (05:14 GMT), spot gold gained 0.6% to $5,109.46 per ounce, while U.S. gold futures slipped 0.3% to $5,111.84 per ounce.
The metal found some support after both the U.S. dollar and oil prices paused their recent rally, particularly following reports that the United States had expanded waivers allowing purchases of Russian crude to help offset supply disruptions linked to the Iran conflict.
Gold still on track for weekly losses
Despite Friday’s modest rebound, spot gold was set to decline about 1.2% for the week, marking its second straight weekly loss.
The yellow metal has received intermittent safe-haven support as geopolitical tensions in the Middle East intensify. However, these gains have been largely offset by growing concerns that the conflict could keep energy prices elevated for an extended period.
Inflation worries limit upside
Markets are increasingly worried that persistently high oil prices could fuel a renewed wave of global inflation, forcing major central banks to maintain a more hawkish monetary stance.
These concerns have led investors to scale back expectations for near-term interest rate cuts by the U.S. Federal Reserve, with policymakers widely expected to keep rates unchanged at next week’s meeting.
Higher interest rates typically reduce the appeal of gold because the metal does not offer a yield.
Gold trading in a tight range
Since the start of the Iran conflict, gold has largely traded within a $5,000–$5,200 per ounce range, reflecting the balance between safe-haven demand and rising interest rate expectations.
Although bullion remains higher for the year overall, momentum has weakened after the metal fell sharply from a record high near $5,600 per ounce reached in late January.
With markets continuing to assess geopolitical risks and the outlook for global inflation, gold is expected to remain range-bound in the near term.
