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Gold prices fell on Friday and were on track for a weekly drop, as elevated oil prices fuelled fears
of inflation and higher-for-longer interest rates amid stalled
U.S.-Iran peace talks.
Spot gold was down 0.7% at $4,661.33 per ounce, as of
0426 GMT. The metal is down 3.5% so far this week after a
four-week winning run.
U.S. gold futures for June delivery fell 1% to
$4,676.50.
Brent crude prices have risen over 17% so far this week to
hover above $105 a barrel, as the key Strait of Hormuz remained
largely closed despite an extension of the Iran ceasefire.
As long as this risk of prolonged closure of the strait is
there, oil will continue to trade at elevated levels, pressuring
gold prices, said Kelvin Wong, a senior market analyst at OANDA.
Higher crude oil prices can stoke inflation by raising
transportation and production costs, increasing the likelihood
of higher interest rates.
While gold is considered an inflation hedge, high interest
rates make yield-bearing assets more attractive, weighing on
bullion’s appeal.
“Gold is still being trapped in this sideways range, between
the 50-day moving average at around $4,900 and at the bottom,
the 20-day moving average at $4,645 level,” Wong said, adding
that “everything now boils down to what’s going on in the Middle
East.”
Iran flaunted its tightened grip over the strait on Thursday
with a video of commandos in a speedboat storming a huge cargo
ship, after the collapse of peace talks that Washington had
hoped would open one of the world’s most important shipping
corridors.
Trump told reporters that he believed Tehran wanted to make
a deal but that its leadership was in turmoil. He said he was in
no hurry for a deal, but if Iran did not want one, “I’ll finish
it up militarily.”
The U.S. dollar is up 0.8% so far this week, making
greenback-priced bullion more expensive for other currency
holders.
The benchmark 10-year U.S. Treasury yields have
gained over 2% this week, increasing the opportunity cost of
holding non-yielding bullion.
Spot silver fell 1% to $74.69 per ounce, platinum
lost 1.1% to $1,984.60, while palladium was down
0.3% at $1,464.02.
Published on April 24, 2026
