Gold held steady on Friday, but seemed poised for a weekly decline as increasing oil prices heightened inflation worries and complicated the outlook for interest rates. Spot gold held firm at $4,622.41 per ounce, as of 0046, after a rise of more than 2% in the previous session. The metal was set to record a weekly drop of 1.8%. Gold futures in the U.S. for June delivery saw a rise of 0.1%, hitting a price of $4,635.10.
On Thursday, Iran declared that it would respond with “long and painful strikes” against U.S. positions if Washington resumes its attacks, reaffirming its claims over the Strait of Hormuz. This situation hinders U.S. attempts to build a coalition focused on reopening the vital waterway. Brent oil hit a four-year peak, surpassing $126 a barrel on Thursday, before seeing a drop. The European Central Bank and the Bank of England kept their interest rates steady on Thursday, in line with expectations, following similar actions taken earlier in the week by the Federal Reserve and the Bank of Japan.
Global brokerages have gradually revised their earlier forecasts about two U.S. rate cuts in 2026, with current predictions showing a split between possible easing and no cuts, shaped by ongoing inflation worries and cautious policymakers. The data showed the U.S. Personal Consumption Expenditures The Price Index saw a significant uptick of 0.7% last month, representing the largest increase since June 2022. The rise matched what economists had anticipated.
India’s gold imports for April are expected to fall to around 15 metric tons, reaching a level not seen in nearly 30 years, according to industry and government sources, as a result of an unexpected tax demand affecting banks. China’s central bank and customs authority announced on Thursday their intention to simplify the regulations governing gold import-export permits, finalizing a plan initially suggested in September. Spot silver increased by 0.8% to $74.34 per ounce, platinum saw a gain of 0.1% to $1,987.55, while palladium rose by 0.3% to $1,528.39.