Gold prices moved higher on Friday and remained on track for a weekly gain as concerns over inflation and rising interest rates eased in global markets.
According to Beyond Time News, spot gold rose 0.7% to $4,715.49 per ounce, while US gold futures for June delivery gained 0.3% to $4,725. Bullion has climbed around 2.2% so far this week.
Market sentiment improved despite renewed tensions between the United States and Iran. Both countries reportedly exchanged fire on Thursday in the biggest test of their month-long ceasefire, though officials later signaled that the situation had stabilized.
Analysts said investor optimism over a possible US-Iran peace agreement continued to support gold prices.
Kyle Rodda, senior financial market analyst at Capital.com, said markets remain focused on developments between Washington and Tehran, with traders expecting short-term price volatility depending on new headlines.
Gold Prices Post Strong Rs7,800 Per Tola Increase
Oil Prices and Interest Rate Outlook in Focus
Gold prices had previously fallen more than 10% since the conflict began in late February due to rising oil prices, which increased fears of inflation and possible higher interest rates.
Higher crude oil prices can fuel inflation, making central banks more likely to keep interest rates elevated. While gold is traditionally seen as a safe-haven asset and inflation hedge, higher interest rates often reduce demand for the non-yielding metal.
According to Beyond Time News, investors are now closely watching the upcoming US employment report for clues about future Federal Reserve policy decisions.
Economists surveyed by Reuters expect US nonfarm payrolls to rise by 62,000 last month after an increase of 178,000 in March.
