Gold prices held steady on Friday, but were on track for a fourth straight weekly decline, as surging energy prices from the Middle East conflict fuelled inflation concerns and bolstered bets on higher-for-longer global interest rates.
Spot gold was little changed at $4,380.39 per ounce as of 0101 GMT. Bullion has fallen more than 2% so far this week.
U.S. gold futures for April delivery were steady at $4,375.
Gold has fallen about 17% since the U.S.-Israeli war on Iran began on February 28, pressured by a stronger U.S. dollar, which has gained more than 2% over the same period.
Brent crude held above $105 a barrel, stoking inflation fears, as the conflict has all but halted shipments through the Strait of Hormuz, a major conduit for roughly one-fifth of global crude and LNG flows.
Higher oil prices threaten to push up transport and manufacturing costs, adding to inflationary pressures. Although inflation typically boosts gold’s appeal as a hedge, high interest rates weigh on demand for the non-yielding asset.
Traders have fully priced out any Federal Reserve easing for 2026, compared with expectations for two cuts before the Iran conflict erupted, per the CME Group’s FedWatch Tool.
U.S. President Donald Trump said he would extend a pause on strikes against Iran’s energy facilities into April and that talks with Iran were going “very well,” but an Iranian official dismissed the U.S. proposal to end the war as “one-sided and unfair.”
Separately, U.S. data showed jobless claims rose slightly last week, signalling a still-stable labor market and giving the Fed room to keep rates steady while monitoring inflation risks linked to the war.
Spot silver fell 0.8% to $67.47 per ounce. Spot platinum lost 0.2% to $1,823.40, while palladium gained 1.3% to $1,370.75.
