Gold prices declined on Friday and were on track for a notable weekly loss, as heightened uncertainty surrounding the U.S.-Iran conflict drove investors toward the dollar.
Spot gold slipped 0.5% to $4,672.22 an ounce by 02:27 ET (06:27 GMT), while gold futures fell 0.8% to $4,686.89 per ounce. Over the week, spot prices were set to drop around 3%, pressured by a stronger dollar as concerns over the inflationary fallout of the Iran conflict supported the greenback.
The dollar was heading for its strongest weekly performance since early March.
Precious Metals Under Pressure
Other precious metals also weakened under the weight of the firmer dollar. Spot silver declined 1.2% to $74.483 per ounce and was on course for a weekly loss of nearly 8%.
Spot platinum fell 1% to $1,992.72 per ounce, bringing its weekly decline to about 5.4%.
Both silver and platinum had recently outperformed gold, leaving them exposed to profit-taking. Their gains had been supported by optimism around industrial demand, as well as expectations of a widening supply deficit for silver in 2026.
Inflation Concerns and Rate Outlook
Markets remain concerned that the inflationary impact of the Iran conflict could prompt major central banks to adopt a more hawkish stance and push interest rates higher—an environment that typically weighs on metals.
Higher rates tend to reduce the attractiveness of non-yielding assets such as gold. Meanwhile, oil prices have surged this week, reinforcing fears of energy-driven inflation.
Ongoing Geopolitical Tensions
Although the United States extended a ceasefire with Iran indefinitely earlier this week, tensions between the two nations persist. Iran has continued to restrict access through the Strait of Hormuz, while the U.S. maintains a naval blockade.
U.S. President Donald Trump said on Thursday that he was in no hurry to strike a peace agreement with Iran and had instructed the military to respond to any Iranian vessels attempting to lay mines in the strait.
Separately, Iran released footage it claimed showed its forces boarding a vessel and highlighted its fast-boat capabilities for operations in the Hormuz region, underscoring the ongoing risks to global shipping and energy markets.