Key Moments
- Spot gold rose 0.4% to $5,017.85 per ounce and U.S. Gold Futures climbed 0.8% to $5,036.5 in Asian trade.
- The metal has been on track for a nearly 0.6% weekly decline despite a mid-week safe-haven bid tied to U.S.-Iran tensions.
- The U.S. Dollar Index has been set to gain over 1% this week, while markets have awaited the U.S. PCE Price Index reading.
Gold Holds Higher But Heads for Weekly Decline
Gold prices advanced in Asian trading on Friday, extending a two-session rally, yet remained positioned for a loss over the week as traders balanced escalating U.S.-Iran tensions against a firmer U.S. dollar and upcoming U.S. inflation data.
Spot gold increased 0.4% to $5,017.85 per ounce by 01:17 ET (06:17 GMT), while U.S. Gold Futures gained 0.8% to $5,036.5. Even with the late-week strength, the metal has been set to decline by nearly 0.6% for the week, following a sharp mid-week spike in demand driven by risk aversion.
The weekly performance has reflected a drop earlier in the period when optimism around potential U.S.-Iran diplomatic engagement reduced safe-haven demand, before renewed geopolitical unease later in the week lent support again. Trading activity has remained subdued, with Chinese markets closed for the Lunar New Year holidays.
Geopolitics, Dollar Strength, and Fed Signals
Rising diplomatic friction between Washington and Tehran has underpinned bullion. U.S. President Donald Trump warned on Thursday that Iran must negotiate a nuclear deal or face unspecified consequences within about 10 to 15 days, highlighting the perceived risk of military escalation and potential disruption to Middle East oil supplies and global markets.
At the same time, upside for gold has been curtailed by a stronger U.S. currency and a hawkish tone in recent Federal Reserve minutes, which has dampened expectations for near-term interest rate cuts. The U.S. Dollar Index was poised to climb more than 1% this week – its strongest weekly showing in months – a move that generally pressures non-yielding assets such as gold.
Investor attention has turned toward Friday’s release of the U.S. Personal Consumption Expenditures (PCE) Price Index, viewed as the Federal Reserve’s preferred inflation measure.
Broader Metals Complex Moves Higher
Price gains were not limited to gold, as both precious and industrial metals inched higher on Friday.
| Metal / Contract | Price | Move | Unit |
|---|---|---|---|
| Spot Gold | $5,017.85 | +0.4% | per ounce |
| U.S. Gold Futures | $5,036.5 | +0.8% | per ounce |
| Silver | $78.80 | +0.4% | per ounce |
| Platinum | $2,089.65 | +0.4% | per ounce |
| Benchmark Copper Futures (LME) | $12,848.20 | +0.3% | per ton |
| U.S. Copper Futures | $5.77 | largely steady | per pound |
Silver added 0.4% to trade at $78.80 per ounce, and platinum also advanced 0.4% to $2,089.65 per ounce. In the base metals space, benchmark Copper Futures on the London Metal Exchange rose 0.3% to $12,848.20 a ton, while U.S. Copper Futures were described as largely unchanged at $5.77 a pound.
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