Gold bars weighing 1000 grams each are displayed at the Austrian Gold and Silver Refinery (Oegussa) in Vienna, Austria, on Feb. 3, 2026.
Georg Hochmuth | AFP | Getty Images
Gold rose on Friday, but was on track for its first weekly loss in the last five weeks, as lingering inflation concerns and the uncertain state of the U.S.-Iran war kept markets on edge.
Spot gold was up 0.7% at $4,724.19 an ounce, having risen more than 1% earlier in the session, and is down more than 2% so far this week. U.S. gold futures U.S. gold futures for June delivery rose 0.4% to $4,741.30.
The precious metal slumped throughout March as the U.S.-Iran war strengthened the dollar and stoked fears of higher inflation that weighed on demand for gold.
More recently, the conflict has been at a standstill, with the crucial Strait of Hormuz still closed even though military strikes by any of the nations involved have dwindled. That has left investors to fill in the blanks or react to U.S. President Donald Trump’s statements, which offset expectations for a deal to end the conflict with threats to resume attacks.
Iran’s Foreign Minister Abbas Araqchi was expected in the Pakistani capital Islamabad on Friday to discuss proposals for restarting peace talks with the United States, but was not due to meet U.S. negotiators, Pakistani government sources said. Separately, Israel and Lebanon extended their ceasefire for three weeks.
“It’s really just a headline-driven market because of all the uncertainty — the headlines right now seem to favor some kind of peace agreement with Iran, the market is looking at a net positive situation currently. Energies are coming off a little bit too,” said Daniel Pavilonis, senior market strategist at RJO Futures.
Oil prices ebbed on Friday, but those benchmarks have surged this week after a second round of talks between the U.S. and Iran failed to materialize, and as Iran flaunted its control over the Strait of Hormuz.
Higher oil prices can stoke inflation, driving up chances of higher interest rates.
“Gold saw a fall (this week) because the oil price was going higher, so were expectations of higher rates, the dollar, yields, all correlated,” said UBS analyst Giovanni Staunovo.
Benchmark 10-year U.S. Treasury yields were up this week, raising the opportunity cost of holding gold, while the dollar was on track for its first weekly gain in three, making bullion more expensive for holders of other currencies.
Spot silver rose 0.6% to $75.86 per ounce, platinum added 0.7% to $2,019.53 and palladium gained 2.1% to $1,499.41.