Gold held steady on Friday, but was on track for a weekly drop as elevated oil prices fuelled fears of inflation and higher-for-longer interest rates amid stalled U.S.-Iran peace talks.
Spot gold was up 0.1% at $4,697 per ounce, as of 0105 GMT. The metal is down 2.6% so far this week after a four-week winning run.
U.S. gold futures for June delivery fell 0.2% to $4,712.50. * Brent crude prices have risen over 18% so far this week to hover above $105 a barrel, as the key Strait of Hormuz remained largely closed despite an extension to the ceasefire.
Lebanon and Israel extended their ceasefire for three weeks after a high-level meeting at the White House, U.S. President Donald Trump said on Thursday.
Trump told reporters that he believed Tehran wanted to make a deal but that its leadership was in turmoil. He said he was in no hurry for a deal, but if Iran did not want one, “I’ll finish it up militarily.”
The global economy is facing ever more tangible strains from the energy shock triggered by the Iran war as factories grapple with soaring production costs and activity weakens even in services sectors, major surveys showed on Thursday.
CME Group on Thursday cut the initial margin on its COMEX 100 gold futures to 6% from 7% and lowered the initial margin on its COMEX 5,000 silver futures to 11% from 14%.
On the data front, the number of Americans filing claims for unemployment benefits increased slightly last week, pointing to continued labour market stability in April, though economic uncertainty and higher prices stemming from the Iran war pose downside risks.
Spot silver fell 0.1% to $75.36 per ounce, platinum lost 0.5% to $1,996.13, while palladium was steady at $1,468.50.
