Gold prices remained largely unchanged on Friday, as investors processed the outcomes of the U.S.-Iran nuclear discussions from the prior day, while the dollar, positioned close to three-week peaks, exerted downward pressure on the yellow metal. Spot gold remained unchanged at $5,187.39 per ounce as of 0146. Bullion reached a peak not seen in over three weeks on Tuesday. U.S. gold futures for April delivery experienced an increase of 0.2%, reaching a price of $5,204.10.
The dollar remained stable, hovering close to three-week highs, which rendered dollar-denominated gold more costly for holders of alternative currencies. Last week, there was a slight uptick in the number of Americans submitting new applications for jobless benefits, while the unemployment rate seemed to remain stable in February, reflecting a consistent labor market. Meanwhile, the trajectory for Federal Reserve chair nominee Kevin Warsh to implement immediate interest rate cuts in accordance with President Donald Trump’s expectations may be diminishing, as signs of optimism regarding the U.S. economy emerge, CEO confidence in future prospects increases, and investors react to a more hawkish stance from the central bank’s policymakers.
Current market expectations indicate that the Federal Reserve is anticipated to implement three rate cuts of 25 basis points each this year, as per the CME’s FedWatch Tool. Gold appears to be in a neutral position within the range of $5,158 to $5,201 per ounce. A breakout from this range could indicate a potential direction, according to Wang Tao. He noted that the bias may lean towards the upside, with a possibility of reaching $5,243 or even higher levels.
In Geneva, the U.S. and Iran engaged in discussions regarding Tehran’s nuclear program on Thursday, according to the mediator Oman. However, despite hours of negotiation, there was no indication of a breakthrough that could prevent potential U.S. strikes in the context of a significant military buildup. Spot silver increased by 0.6% to $88.81 per ounce, following a rise to a three-week high on Wednesday. Spot platinum increased by 0.6% to $2,286.53 per ounce, whereas palladium rose by 0.5% to $1,794.13.