Gold Extends Rally to Third Week as Markets Navigate Fragile Iran Ceasefire and Await Inflation Data

Gold prices edged lower in Asian trading on Friday but remained on track for a weekly rise, as a fragile U.S.-Iran ceasefire provided underlying support, although investors remained cautious ahead of key talks this weekend. Spot gold edged down 0.2% to $4,752.29 an ounce by 02:31 ET (06:31 GMT), hovering below recent three-week highs, while U.S. Gold Futures fell 0.9% to $4,776.67. Despite the modest pullback, bullion was set to gain about 1.5% for the week, marking a third straight weekly advance as geopolitical uncertainty continued to fuel safe-haven demand.

The temporary ceasefire between the U.S. and Iran, announced earlier this week, helped stabilize sentiment across global markets, but the agreement showed signs of cracks with continued military activity in Lebanon. The Strait of Hormuz, a critical artery for global oil supplies, remains largely shut, with President Trump criticizing Iran for doing a “poor job” of allowing energy supplies to flow. Attention has now turned to the weekend’s U.S.-Iran talks, which are expected to provide more clarity on the geopolitical outlook. However, Iranian media reported that Tehran has denied that a negotiating delegation has arrived in Islamabad for talks with the United States, adding that discussions would remain suspended as long as Washington does not uphold commitments related to a ceasefire in Lebanon and Israeli attacks continue.

Crude prices declined this week after surging near $120 per barrel on President Donald Trump’s threat to wipe out Iran. Elevated oil prices have stoked global inflation worries, complicating the outlook for central banks and potentially keeping interest rates higher for longer. The US Dollar Index edged up 0.1% higher on Friday but was set to drop more than 1% for the week, making gold cheaper for overseas buyers and aiding the metal’s recent gains. Markets are now awaiting key U.S. consumer inflation data due later on Friday, which could offer further cues on the Federal Reserve’s policy trajectory. Economists expect headline CPI to accelerate due to a surge in energy prices amid the Middle East conflict.

In other precious metals, silver prices edged up 0.3% to $75.54 per ounce, while platinum slipped 1.8% to $2,065.97 per ounce. Benchmark Copper Futures on the London Metal Exchange edged up 0.4% to $12,743.33 a ton, while U.S. Copper Futures rose 0.6% to $5.79 a pound, reflecting broader investor positioning ahead of the inflation data release.