Khaberni - Gold prices rose more than one percent on Friday, supported by buying operations, but it is on its way to incur losses for the fourth consecutive week, as the rise in energy prices fueled inflation concerns and boosted expectations for global interest rate hikes.
Gold in the spot transactions advanced 1.1 percent to $4428.30 per ounce, but the precious metal is down about 1.3 percent since the beginning of the week.
The dollar weakened, making gold priced in the U.S. currency cheaper for holders of other currencies.
Gold has dropped by about 17 percent since the start of the U.S.-Israeli war on Iran on February 28, pressured by the rise of the dollar, which has increased by more than two percent during that period.
Brent crude exceeded $105 per barrel, raising inflation fears as the conflict led to an almost complete halt of shipments through the Strait of Hormuz, a major passageway for about one-fifth of global crude oil and liquefied natural gas flows.
The rise in oil prices threatens to increase transportation and manufacturing costs, adding to inflationary pressures. Although inflation typically boosts the appeal of gold as a hedging tool, the rise in interest rates weighs on the metal which does not yield returns.
According to the FedWatch tool by CME, traders completely rule out any easing of U.S. monetary policy in 2026 compared to previous expectations that suggested two interest rate cuts before the outbreak of the conflict.
U.S. President Donald Trump said he will extend the deadline before striking Iranian energy facilities until April, adding that negotiations with Iran are going "very well." However, an Iranian official criticized the American proposal to end the war, describing it as "unilateral and unfair."
As for other precious metals, the spot price of silver rose 1.1 percent to $68.80 per ounce. The price of platinum in spot transactions increased by 2.1 percent to $1865.13, and palladium gained 2.7 percent to reach $1389.80.
