Gold edges up on Friday but heads for weekly decline
Gold rose on Friday as Middle East tensions boosted safe-haven demand. The metal is set for a weekly loss as inflation fears weigh on interest rate cut hopes.
Gold prices edged higher on Friday as safe-haven demand intensified following a surge in geopolitical friction across the Middle East. Despite this daily gain, the precious metal remained on track for its first weekly decline in five weeks, pressured by persistent inflation concerns that have dampened expectations for imminent interest rate cuts. Spot prices rose 0.3% to reach $5,093.76 per ounce, while United States gold futures for April delivery climbed 0.5% to $5,102.10. However, the asset has retreated more than 3% since Monday, ending a month-long winning streak as a strengthening dollar and shifting monetary policy outlooks weighed on investor sentiment.
The conflict escalated as Israel launched significant airstrikes against Hezbollah-controlled areas in the southern suburbs of Beirut, Lebanon, and targeted infrastructure within Iran. In response, Tehran reported missile strikes aimed at the heart of Tel Aviv. These tensions have kept a floor under bullion prices, even as macroeconomic headwinds persist.
