Khaberni - Gold rose on Friday, supported by buying demand after a recent decline but is headed for a fourth consecutive week of losses, with rising expectations of US interest rate hikes amid renewed concerns about inflation due to the Iran war limiting gains.
Gold in spot transactions increased by 0.9 percent to $4416.90 per ounce. It is expected to record a weekly loss of 1.6 percent after touching its lowest level in four months earlier this week at $4097.99.
US futures contracts for gold delivery in April increased by 0.8 percent to $4411.10.
Oil prices are trading above $110 per barrel, despite US President Donald Trump extending Iran's deadline to reopen the Strait of Hormuz after Tehran rejected a 15-point US proposal to end the fighting.
The rise in inflation has shifted the expectations of the Federal Reserve's (US Central Bank) movements towards the likelihood of raising interest rates, which typically negatively affects gold by raising the alternative cost opportunity of owning the metal that does not yield returns.
According to the CME Group's FedWatch tool, traders have completely ruled out a cut in US interest rates in 2026, compared to expecting two cuts before the war started.
As for other precious metals, silver in spot transactions fell by 0.4 percent to $67.74 per ounce. Platinum in spot transactions increased by 0.5 percent to $1835.60, and palladium rose by 0.9 percent to $1370.18.
