Gold prices edged lower on Friday, heading for a second consecutive weekly decline, as persistent inflation concerns and Federal Reserve rate hike expectations pressured sentiment, while investors weighed renewed hopes for a US-Iran diplomatic deal.
Spot gold fell 0.6% to $4,186.99 per ounce by 22:27 ET (02:27 GMT), on track for a weekly loss of more than 3%. US December gold futures rose 2.2% to $4,206.80, supported by easing tensions in the Middle East.
The metal hit a six-month low on Thursday but rebounded 3.5% into the close after US President Donald Trump said Washington and Tehran could sign a peace deal as soon as this weekend. A breakthrough could reopen the Strait of Hormuz, calming fears over global energy supply disruptions.
Still, Iranian officials have stated no final agreement has been reached, keeping regional uncertainty elevated. The improved diplomatic outlook also boosted risk sentiment globally, with oil prices falling sharply and equities recovering.
Gold is traditionally a hedge against inflation and geopolitical risk, but it has struggled in recent weeks as investors focus on the prospect of tighter monetary policy. Higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal relative to interest-bearing assets.
Fresh US economic data released Thursday reinforced concerns that inflation pressures remain sticky. Producer prices rose more than expected in May, recording the steepest annual increase in three and a half years, driven by rising energy costs.
The data prompted traders to increase bets that the Fed will resume policy tightening later this year, with markets pricing around a 60% probability of a rate hike by December.
Among other precious metals, spot silver dipped 0.5% to $67.00 per ounce, while platinum gained 0.6% to $1,734.08.
For ongoing macroeconomic updates, commodity trends and FX market analysis, visit: https://www.setmain.asia/
Spot gold fell 0.6% to $4,186.99 per ounce by 22:27 ET (02:27 GMT), on track for a weekly loss of more than 3%. US December gold futures rose 2.2% to $4,206.80, supported by easing tensions in the Middle East.
The metal hit a six-month low on Thursday but rebounded 3.5% into the close after US President Donald Trump said Washington and Tehran could sign a peace deal as soon as this weekend. A breakthrough could reopen the Strait of Hormuz, calming fears over global energy supply disruptions.
Still, Iranian officials have stated no final agreement has been reached, keeping regional uncertainty elevated. The improved diplomatic outlook also boosted risk sentiment globally, with oil prices falling sharply and equities recovering.
Gold is traditionally a hedge against inflation and geopolitical risk, but it has struggled in recent weeks as investors focus on the prospect of tighter monetary policy. Higher interest rates increase the opportunity cost of holding non-yielding bullion, reducing its appeal relative to interest-bearing assets.
Fresh US economic data released Thursday reinforced concerns that inflation pressures remain sticky. Producer prices rose more than expected in May, recording the steepest annual increase in three and a half years, driven by rising energy costs.
The data prompted traders to increase bets that the Fed will resume policy tightening later this year, with markets pricing around a 60% probability of a rate hike by December.
Among other precious metals, spot silver dipped 0.5% to $67.00 per ounce, while platinum gained 0.6% to $1,734.08.
For ongoing macroeconomic updates, commodity trends and FX market analysis, visit: https://www.setmain.asia/