Gold prices declined in Asian trading on Friday, staying close to their lowest levels in a month as ongoing uncertainty סביב the Iran conflict and its implications for global interest rates weighed on sentiment in the metals market.
Spot gold slipped 0.5% to $4,600.06 per ounce as of 06:17 GMT, while gold futures dropped 0.4% to $4,611.54 per ounce. Trading activity remained subdued due to public holidays across much of Asia.
Hawkish Central Bank Signals Extend Recent Losses
Gold has now endured two consecutive months of losses, with spot prices falling around 1% in April after a sharp decline of nearly 12% in March. Concerns about rising inflation—largely driven by the Iran conflict—have pushed investors toward the U.S. dollar instead.
Higher oil prices have also overshadowed gold’s appeal, as disruptions to global crude supply linked to the conflict have intensified inflationary pressures.
Central bank commentary this week further pressured the metal. The Federal Reserve saw more policymakers warn about energy-driven inflation, while the European Central Bank, Bank of England, and Bank of Japan all signalled the possibility of near-term interest rate hikes.
Rising rates typically weigh on gold and other non-yielding assets, as they increase the opportunity cost of holding them.
Mixed Performance Across Precious Metals
Other precious metals showed mixed movements on Friday following an uneven April. Spot silver rose 0.3% to $74.240 per ounce, although it posted a roughly 2% decline over the month.
Platinum, on the other hand, fell 0.4% to $1,982.13 per ounce, but still recorded modest gains in April.
U.S.-Iran Standoff Continues to Weigh on Markets
Persistent tensions between the United States and Iran continued to shape investor behaviour, with many traders favouring the dollar over gold.
Reports earlier in the week indicated that Donald Trump had been briefed on potential additional military actions against Iran, particularly as diplomatic efforts between Washington and Tehran stalled.
Iran’s Supreme Leader, Mojtaba Khamenei, issued a rare statement on Thursday, saying Iran would maintain control over the Strait of Hormuz and protect its nuclear and missile capabilities.
He stated that Iran’s control of the waterway would bring “calm, progress, and economic benefits to all Gulf nations.”
The remarks followed reports suggesting Trump was dissatisfied with an Iranian proposal to reopen the Strait of Hormuz and bring an end to the conflict.
The strategic waterway has remained effectively blocked since the escalation of U.S.-Israeli tensions with Iran earlier this year, making it a central flashpoint in the region.
Since the conflict began, gold has underperformed relative to the dollar, as demand for safe-haven assets has been overshadowed by concerns over inflation driven by rising energy prices.