During Friday’s Asian trading session, gold prices declined, reflecting a modest rise in risk appetite following statements from the White House suggesting that a U.S. strike on Iran related to the Israel conflict is not imminent.
The precious metal remained pressured after earlier in the week hawkish comments from the Federal Reserve bolstered the U.S. dollar’s strength. Although the dollar softened slightly on Friday, it was still on track for weekly gains. The strong dollar also capped a recent rally in platinum, which had reached a more than four-year high.
Spot gold slipped 0.5% to $3,353.17 per ounce, while August gold futures dropped 1.1% to $3,369.40 per ounce as of 00:58 ET (04:58 GMT).
Risk Appetite Improves After Trump Delays Iran Decision
Gold’s decline came amid growing investor confidence in broader markets after the White House announced that President Donald Trump would take two weeks before deciding on U.S. involvement in the escalating Israel-Iran conflict. This helped ease concerns about an imminent military strike following earlier reports about preparations for such an action.
However, the “two weeks” timeline has often been used by Trump to delay key decisions, adding a layer of uncertainty for investors. For instance, Trump used the same timeframe eight weeks ago when questioned about his trust in Russian President Vladimir Putin.
Despite ongoing hostilities between Israel and Iran now entering their eighth day, the pause in immediate U.S. military action bolstered some market optimism.
Other Metals Weaken on Dollar Strength and Fed Outlook
Silver futures declined 1.6% to $35.765 per ounce. Copper prices also fell, with London Metal Exchange copper futures down 0.3% to $9,602.05 per ton and U.S. copper futures dropping 0.9% to $4.7650 per pound.
Platinum retreated 1.5% to $1,282.75 per ounce, pulling back from the recent four-year peak set in the previous session. Despite the pullback, platinum is poised to close its third consecutive week of gains, up 5.8%, driven by strong demand and tightening supply fundamentals highlighted in a recent industry report. The report triggered a speculative rally, although some analysts remain cautious about how sustainable the price increase will be.