Gold prices moved slightly lower during Asian trading on Friday but remained on course for a weekly increase, supported by a fragile ceasefire between the United States and Iran. Investors, however, stayed cautious ahead of anticipated diplomatic talks over the weekend.
Spot gold declined 0.2% to $4,752.29 per ounce as of 02:31 ET (06:31 GMT), hovering just below recent three-week highs. U.S. gold futures dropped 0.9% to $4,776.67.
Despite the pullback, bullion is on track to post a gain of roughly 1.5% for the week, marking its third consecutive weekly rise.
Focus on U.S.-Iran talks amid fragile ceasefire
The temporary ceasefire announced earlier this week between the U.S. and Iran helped steady global market sentiment, although the agreement has shown signs of strain due to ongoing military activity in Lebanon.
The Strait of Hormuz, a key route for global oil supplies, remains largely closed. U.S. President Donald Trump criticized Iran for doing a “poor job” of allowing energy supplies to flow.
Market attention is now turning to planned U.S.-Iran discussions over the weekend, which are expected to provide further clarity on geopolitical risks.
However, Iranian media reports indicate that Tehran has denied sending a negotiating team to Islamabad for talks with U.S. officials. The reports also stated that discussions will remain suspended as long as Washington does not meet its commitments related to the ceasefire in Lebanon and Israeli strikes continue.
CPI data awaited as dollar heads for weekly decline
Oil prices have retreated this week after previously surging close to $120 per barrel following threats from President Trump to take military action against Iran.
Elevated energy prices have intensified global inflation concerns, complicating the outlook for central banks and increasing the likelihood that interest rates may remain higher for longer.
The U.S. Dollar Index rose slightly by 0.1% on the day but remains on track to fall more than 1% for the week. A weaker dollar makes gold more affordable for international buyers, supporting the metal’s recent upward trend.
Investors are now awaiting key U.S. consumer price index data due later on Friday, which could offer further signals on the future direction of Federal Reserve policy.
Economists expect headline inflation to accelerate, largely driven by higher energy costs linked to tensions in the Middle East.
Silver prices rose 0.3% to $75.54 per ounce, while platinum declined 1.8% to $2,065.97 per ounce.
Copper markets were also firmer, with benchmark futures on the London Metal Exchange rising 0.4% to $12,743.33 per tonne, and U.S. copper futures gaining 0.6% to $5.79 per pound.