According to Reuters, gold prices are under pressure in the context of a stronger USD and the "hawkish" stance of the US Federal Reserve (Fed) weakening expectations of early interest rate cuts.
Spot gold prices in the world recorded at 4:30 PM (Vietnam time) at 4.691 USD/ounce, up 0.89% during the day. US gold futures for April delivery increased by 1.6% to 4,676.9 USD (recorded at 2:02 PM - Vietnam time).
Mr. Nicholas Frappell - Global Director of Organizational Markets at ABC Refinery - commented: "Gold has maintained some important technical support levels over the weekly timeframe and may recover to the broken zone, around the 4,800 USD/ounce mark.
However, this precious metal has fallen more than 6% in the past week. Since the US-Israel attack on Iran on February 28, spot gold prices have lost more than 10%.
The emerging USD is one of the most prominent "safe haven" assets, increasing by more than 2% this month. Meanwhile, the Fed kept interest rates unchanged in its meeting on Wednesday and said inflation could increase.
According to CME's FedWatch tool, the market currently assesses the possibility of the Fed cutting interest rates this year as very low.
In addition, a strong USD makes gold more expensive for investors holding other currencies.
Mr. Frappell added: "After performing poorly during the Middle East conflict, investors tend to sell rather than buy gold, while waiting for signals confirming this sentiment.
Oil prices fell in Friday's session but remained above $105 a barrel, as Israel continued airstrikes on Tehran. This development occurred a day after President Donald Trump called for no recurrence of attacks targeting Iran's gas infrastructure, escalating tensions.
Earlier, US Treasury Secretary Scott Bessent said Washington could soon lift sanctions on Iranian oil trapped on oil tankers.
In the Asian market, gold discounts in India have narrowed compared to nearly a decade high last week, thanks to increased buying demand during holidays and sharply reduced prices. Meanwhile, premium rates in China have decreased due to weakening physical demand.
In other precious metals, spot silver prices fell 1.7% to 71.66 USD/ounce. Platinum prices rose 0.2% to 1,974.45 USD, and palladium rose 1% to 1,461.36 USD.
The world gold and silver market operates through two main pricing mechanisms. The first is the spot market, which lists prices for spot trading and spot delivery. The second is the futures market, which determines the price for delivery at a time in the future.
Due to the liquidity factor associated with year-end portfolio restructuring activities, the December gold futures contract is currently the most actively traded type on the Chicago Mercantile Exchange (CME).
