Gold prices jumped more than 2% during Asian trading on Friday, helped by a slightly weaker U.S. dollar and signs of easing geopolitical tensions after Donald Trump indicated that negotiations with Iran were advancing.
Spot gold rose 2.1% to $4,467.32 per ounce as of 02:41 ET (06:41 GMT), while U.S. gold futures increased 1.1% to $4,457.6 per ounce.
Despite Friday’s rebound, the precious metal had fallen nearly 3% in the previous session and remained on track to post a weekly decline of about 0.5%.
Trump pauses attacks on Iranian energy sites
President Trump said Thursday that the United States would halt strikes on Iran’s energy infrastructure for 10 days following a request from Tehran, adding that negotiations were “going very well.”
The pause in hostilities eased immediate demand for safe-haven assets but also weakened the dollar slightly, providing support for gold, which often moves in the opposite direction of the U.S. currency.
The U.S. Dollar Index slipped 0.1% after recording gains for three consecutive sessions.
Gold markets have experienced heightened volatility in recent weeks as the conflict in the Middle East disrupted the metal’s traditional safe-haven behavior.
Earlier this month, a sharp surge in oil prices triggered by supply disruptions linked to the Iran conflict raised concerns about global inflation.
Rising energy costs could keep inflation pressures elevated and strengthen expectations that central banks may keep interest rates higher for longer.
Silver and platinum rally
Oil prices edged lower on Friday and were on course for a weekly decline as diplomatic efforts to reduce tensions gathered momentum.
However, ongoing uncertainty about how the conflict might develop, along with mixed signals about attempts to end the fighting, continued to keep investors cautious.
Among other precious metals, silver advanced 2.6% to $68.75 per ounce, while platinum climbed 3.5% to $1,901.60 per ounce.
Benchmark copper futures on the London Metal Exchange gained 1% to $12,254.95 per ton, while U.S. copper futures rose 1.1% to $5.53 per pound.