Gold prices inched up during Asian trading on Friday, building on gains from the previous two sessions. However, the metal remained on course for a weekly loss as investors balanced renewed tensions between the United States and Iran with expectations surrounding upcoming U.S. inflation data.
Spot gold rose 0.4% to $5,017.85 per ounce as of 01:17 ET (06:17 GMT), while U.S. gold futures advanced 0.8% to $5,036.5.
Despite a midweek surge driven by safe-haven buying, bullion is still poised to end the week down roughly 0.6%.
Earlier in the week, prices retreated as optimism over potential diplomatic engagement between Washington and Tehran dampened risk aversion. Those losses were partially reversed later on as geopolitical concerns resurfaced.
Trading activity remained subdued, with Chinese markets closed for the Lunar New Year holiday.
US-Iran tensions lend support; PCE data in focus
Rising diplomatic friction between the U.S. and Iran continued to underpin demand for gold.
President Donald Trump said on Thursday that Iran must reach an agreement on its nuclear program within 10 to 15 days or face unspecified repercussions, heightening fears of possible military escalation that could disrupt energy supplies and unsettle global markets.
Still, gains in gold were limited by a stronger U.S. dollar and a more hawkish tone in the latest Federal Reserve meeting minutes, which reduced expectations of near-term interest rate cuts.
The U.S. Dollar Index is on track to climb more than 1% this week — marking its strongest weekly performance in months — a trend that typically pressures non-yielding assets such as gold.
Attention is now turning to the release of the U.S. Personal Consumption Expenditures (PCE) Price Index later on Friday, the inflation measure most closely monitored by the Federal Reserve.
Other metals also advance
Precious and base metals also posted modest gains.
Silver climbed 0.4% to $78.80 per ounce, while platinum rose 0.4% to $2,089.65 per ounce.
Copper prices were slightly firmer as well. Benchmark copper futures on the London Metal Exchange gained 0.3% to $12,848.20 per metric ton, while U.S. copper futures held steady at $5.77 per pound.