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Economy
Gold prices rose more than 1% on Friday, supported by buying activity, but are on track to post a loss for the fourth consecutive week amid escalating inflation concerns and reinforced expectations of global interest rate hikes.
By 02:28 GMT, spot gold climbed 1.1% to $4,428.30 per ounce, but remains about 1.3% lower for the week. US gold futures for April delivery also rose 1.1% to $4,423.40.
A decline in the dollar helped support the precious metal, as a weaker dollar makes dollar-priced gold cheaper for holders of other currencies.
Despite this rise, gold has lost around 17% of its value since the war broke out on February 28, under pressure from a dollar that has risen more than 2% over the same period.
In contrast, Brent crude surpassed $105 per barrel, fuelling inflation fears — especially with near-total disruption to shipping through the Strait of Hormuz, one of the world's most important corridors for transporting oil and gas.
Rising energy prices increase transport and manufacturing costs, worsening inflationary pressures. Although gold is considered a safe haven during inflationary times, higher interest rates reduce its appeal since it generates no yield.
According to the FedWatch tool, traders no longer expect any interest rate cuts in 2026, compared to previous expectations that pointed to two cuts before the conflict escalated.
In a related development, reports indicated that the deadline before a decision on targeting Iranian energy facilities was extended to April, with a note that diplomatic efforts are continuing, while an Iranian official criticised the proposal to end the war, calling it "one-sided and unfair".
As for other precious metals, silver rose 1.1% to $68.80 per ounce, platinum climbed 2.1% to $1,865.13, and palladium jumped 2.7% to $1,389.80.
