Gold Rebounds Over 2% as Softer Dollar and Iran Talks Support Bullion

Gold prices rose sharply in Asian trading on Friday, recovering from the previous session’s losses as a weaker U.S. dollar and signs of easing geopolitical tensions boosted demand for the precious metal.

Spot gold climbed 2.1% to $4,467.32 per ounce as of 02:41 ET (06:41 GMT), while U.S. gold futures gained 1.1% to $4,457.6 per ounce. The rebound follows a nearly 3% decline in the prior session, leaving gold on track for a modest weekly loss of around 0.5%.

The recovery in bullion prices came after U.S. President Donald Trump signaled progress in negotiations with Iran, announcing a 10-day pause in attacks on Iran’s energy infrastructure at Tehran’s request. He also stated that talks were “going very well,” raising hopes for a potential de-escalation in the Middle East conflict.

While the temporary halt in hostilities reduced immediate safe-haven demand, it also contributed to a softer U.S. dollar, which in turn supported gold prices. The U.S. Dollar Index edged down 0.1% after posting gains over the previous three sessions, making bullion more attractive to holders of other currencies.

Gold markets have experienced significant volatility in recent weeks, as geopolitical developments disrupted traditional safe-haven dynamics. Earlier in the month, a surge in oil prices driven by supply concerns from the Iran conflict fueled fears of rising global inflation.

Elevated energy costs could sustain inflationary pressures, reinforcing expectations that central banks may need to maintain higher interest rates for longer. This dynamic typically acts as a headwind for gold, which does not offer yield, but recent currency movements have provided short-term support.

Other precious metals also posted strong gains. Silver rose 2.6% to $68.75 per ounce, while platinum advanced 3.5% to $1,901.60 per ounce, reflecting a broader recovery across the metals complex.

In industrial metals, benchmark copper futures on the London Metal Exchange increased 1% to $12,254.95 per ton, while U.S. copper futures gained 1.1% to $5.53 per pound.

Despite the rebound, market sentiment remains cautious. Ongoing uncertainty around the trajectory of the Middle East conflict, combined with mixed signals on diplomatic progress, continues to keep investors on edge and sustain volatility across commodity markets.