Gold prices rose by about 2% in Friday's trading session thanks to the weakening USD and bottom-fishing buying pressure from investors, although the precious metal is still heading towards its fourth consecutive week of decline.
Spot gold prices increased by 2% to 4,466.38 USD/ounce in this afternoon's trading session. In general, since the beginning of the week, gold prices have still decreased by about 0.5%.
US gold futures for April delivery rose 1.9% to 4,461 USD/ounce.
The weakening USD makes gold valued in greenbacks more attractive to investors holding other currencies.
Since the conflict between the US – Israel and Iran began on February 28, gold prices have fallen by about 16%, in the context of the USD increasing by more than 2% in the same period.
Mr. Tim Waterer - Head of Market Analysis at KCM Trade said that in recent weeks gold has mainly been considered a liquid asset, being sold to compensate for margins in other markets. However, in the current price range, the precious metal is gradually returning to its role as a more attractive valuation option for investors.
He also said that the cautious policy stance of central banks continues to be a factor limiting the upward momentum of gold prices in the short term.
Brent oil prices remain above 105 USD/barrel amid energy transportation through the Strait of Hormuz – an important transportation route for about 1/5 of global crude oil and liquefied natural gas flows – continuing to be disrupted by tensions in the Middle East.
According to CME Group's FedWatch tool, the market currently does not expect the US Federal Reserve (Fed) to cut interest rates in 2026 and is assessing about 35% of the possibility that the Fed may raise interest rates by the end of the year. Before the conflict broke out, the market had expected the Fed to implement two interest rate cuts.
US President Donald Trump said he would extend the suspension of attacks on Iran's energy facilities until April and affirmed that exchanges with Tehran are "going very positively". However, an Iranian official said the US proposal to end the conflict is one-sided and unfair.
Meanwhile, spot silver price increased 3.1% to 70.10 USD/ounce. Platinum rose 3.5% to $1,891.02 an ounce and palladium rose 3.3% to $1,398.30 an ounce.
