Gold rises amid signals of progress in U.S.–Iran negotiations

Gold prices increased during Friday’s Asian trading session amid a moderate weakening of the U.S. dollar and easing geopolitical tensions following statements by Donald Trump regarding progress in negotiations with Iran.

As of 10:55, spot gold rose by 1.2% to $4,463.32 per ounce, while U.S. gold futures gained 1.1%.

The rebound followed a notable decline in the previous trading session, when gold prices fell by around 3%. On a weekly basis, gold still showed a downward trend, indicating a potential decrease of approximately 1.3%.

According to statements from the U.S. side, a decision was made to temporarily suspend attacks on Iran’s energy infrastructure for a period of ten days at Tehran’s initiative. It was also noted that the negotiation process is developing constructively.

The easing of tensions in the Middle East had a mixed impact on the market. On the one hand, demand for safe-haven assets such as gold decreased. On the other hand, pressure on the U.S. dollar supported gold prices, as an inverse correlation between them remains.

The U.S. dollar index declined by 0.1% after three consecutive sessions of growth.

In recent weeks, the gold market has been characterized by increased volatility. The ongoing conflict in the Middle East has significantly affected safe-haven assets, disrupting traditional market relationships. Earlier this year, gold prices reached record highs, followed by a correction.

An additional factor of uncertainty was the rise in oil prices at the beginning of the month, driven by supply disruptions related to the conflict with Iran, which intensified global inflation expectations.

Higher energy prices may contribute to sustained inflationary pressure, shaping expectations of a prolonged period of high interest rates by central banks.

Despite signs of de-escalation between Washington and Tehran, uncertainty regarding future developments and their economic consequences continues to support the gold market.

Among other precious metals, gains were also observed. Silver rose by 1.5% to $70 per ounce, while platinum increased by 2% to $1,871.60 per ounce.