Gold maintained its position on Friday, yet was poised for a weekly decline as rising oil prices heightened concerns regarding inflation and the potential for prolonged elevated interest rates, compounded by the stagnation of U.S.-Iran peace negotiations. Spot gold increased by 0.1% to $4,697 per ounce, as of 0105. The metal has declined by 2.6% thus far this week, following a sequence of four consecutive weeks of gains. U.S. gold futures for June delivery experienced a decline of 0.2%, settling at $4,712.50. Brent crude prices have experienced an increase exceeding 18% this week, currently trading above $105 a barrel, as the crucial Strait of Hormuz remains predominantly closed despite the extension of the ceasefire.

Lebanon and Israel have come to an accord to extend their ceasefire for an additional three weeks following a pivotal meeting at the White House, as stated by U.S. President Donald Trump on Thursday. Trump conveyed his perspective that Tehran appeared receptive to the notion of an agreement, while simultaneously noting that the leadership was experiencing significant turmoil. He indicated that he was not in a rush to finalize an agreement; however, if Iran exhibited a lack of interest, “I’ll resolve it through military means.”

The global economy is encountering significant obstacles stemming from the energy shock triggered by the Iran war, as manufacturing sectors struggle with escalating production costs and a marked decline in activity within the services sectors, as underscored by prominent surveys published on Thursday. CME Group on Thursday reduced the initial margin on its COMEX 100 gold futures to 6% from 7% and decreased the initial margin on its COMEX 5,000 silver futures to 11% from 14%.

Last week, a modest uptick was observed in the number of Americans submitting claims for unemployment benefits, indicating that the labor market continues to exhibit stability for April. Nevertheless, the economic volatility and elevated prices resulting from the Iran conflict present potential adverse risks. Spot silver decreased by 0.1% to $75.36 per ounce, platinum declined by 0.5% to $1,996.13, whereas palladium remained unchanged at $1,468.50.