Gold remains stable amid the escalating conflict between Israel and Iran, with the extent of US involvement still uncertain. Gold prices held steady at $3,367.60 an ounce in the context of rising geopolitical tensions between Israel and Iran. Investors exhibit caution as the United States deliberates its potential involvement in the ongoing conflict. President Trump is considering intervention, as diplomatic efforts continue to unfold. The Federal Reserve’s consistent interest rates, along with the prospect of U.S.-EU trade tariffs, play a significant role in shaping market sentiment. Silver, platinum, and palladium exhibited divergent price movements.
Gold maintained its position on Friday, amid rising geopolitical tensions in the Middle East as Israel and Iran engaged in their air conflict, while investors expressed caution regarding potential U.S. involvement. Spot gold remained unchanged at $3,367.60 an ounce, as of 0020 GMT. Bullion has experienced a decline of 1.9% thus far this week. U.S. gold futures maintained stability at $3,384.20.
The situation in the Middle East escalated on Thursday as Israel conducted airstrikes on Iran’s nuclear facilities, prompting Iran to launch missile and drone assaults on Israel, which included a nighttime strike on an Israeli hospital. Neither party has indicated a strategy for withdrawal. The White House announced on Thursday that U.S. President Donald Trump is expected to make a decision within the next two weeks regarding potential U.S. involvement in the Israel-Iran air conflict, thereby increasing the pressure on Tehran to engage in negotiations.
In the interim, U.S. special envoy Steve Witkoff has engaged in multiple phone conversations with Iranian Foreign Minister Abbas Araqchi since the onset of Israel’s strikes on Iran last week, as part of efforts to seek a diplomatic resolution to the ongoing crisis, according to three diplomats who informed Reuters. Trump reiterated his calls for the Federal Reserve to reduce interest rates, asserting that they should be lowered by 2.5 percentage points.
The Federal Reserve maintained its interest rates on Wednesday, while policymakers upheld their forecasts for two quarter-point reductions in rates within this calendar year. European officials are progressively accepting that a 10% rate on “reciprocal” tariffs will serve as the baseline in any trade agreement between the U.S. and the European Union, according to five sources acquainted with the negotiations.
The U.S. dollar index declined by 0.2%, rendering gold priced in dollars more accessible to international purchasers. Elsewhere, spot silver remained unchanged at $36.36 per ounce, platinum experienced a decline of 0.7% to $1,297.89, while palladium decreased by 0.4% to $1,046.71. All three metals were on track for a weekly increase.