Key Highlights
- Gold maintained levels around $4,765/oz, positioned for a third consecutive weekly advance of approximately 2%
- An unstable US-Iran truce and scheduled weekend negotiations in Islamabad continue to influence market sentiment
- Ongoing gold purchases by central banks such as Poland and China provide consistent support
- Dollar weakness throughout the week enhanced gold’s appeal for international purchasers
- Friday’s US inflation report could reshape market expectations regarding Federal Reserve monetary policy
Precious metal markets showed resilience on Friday with gold hovering around $4,765 per ounce, setting up the yellow metal for its third consecutive weekly advance. This approximately 2% weekly climb occurs against the backdrop of ongoing scrutiny surrounding the delicate ceasefire arrangement between Washington and Tehran.
The temporary cessation of hostilities, unveiled earlier in the week, initially provided relief to nervous markets. However, the truce’s stability has already shown signs of strain. Armed operations persisted in Lebanese territory, while Iranian officials refuted claims that their representatives had traveled to Islamabad for the planned weekend diplomatic discussions with American counterparts.
President Trump expressed a positive outlook regarding potential peace negotiations. Simultaneously, he issued warnings to Iran concerning tolls imposed on maritime vessels navigating the Strait of Hormuz, a critical artery for international petroleum transport that has remained significantly restricted.
PRESIDENT TRUMP:
“There are reports that Iran is charging fees to tankers going through the Hormuz Strait — They better not be and, if they are, they better stop now!” pic.twitter.com/AE18nX5M7i
— The Kobeissi Letter (@KobeissiLetter) April 9, 2026
While posting weekly gains, gold has surrendered nearly 10% of its value since hostilities erupted in late February. Market participants liquidated precious metal positions to offset deteriorating portfolio values elsewhere, diminishing gold’s traditional safe-haven characteristics.
Oil markets were tracking toward their most significant weekly decline since June. Equity markets rebounded during the period, while the US Dollar Index dropped more than 1%, reducing gold’s cost for foreign currency holders.
Persistent Central Bank Accumulation
Central bank acquisition activity has provided unwavering support for precious metal valuations. Polish monetary authorities confirmed their commitment to a 700-ton gold reserve objective. Chinese authorities expanded holdings by approximately 5 tons during March, representing their most substantial monthly addition in more than twelve months.
ANZ Banking Group projects central bank purchases will total roughly 850 tons throughout 2026, with recent price corrections potentially stimulating additional institutional buying.
Escalating oil prices stemming from regional conflict have amplified inflation forecasts. This development has prompted market participants to anticipate that monetary authorities might postpone interest rate reductions or potentially implement increases, creating challenges for gold given its non-yielding nature.
Inflation Data Takes Priority
US consumer expenditure demonstrated minimal growth during February, preceding the outbreak of military conflict, based on Bureau of Economic Analysis figures. March’s consumer price index release on Friday was anticipated to reveal the most pronounced monthly escalation since June 2022.
An elevated inflation reading could strengthen expectations for higher rates, creating additional downward pressure on precious metals. Conversely, prolonged military engagement could suppress economic expansion and ultimately necessitate rate cuts, providing favorable conditions for gold.
Spot gold traded at $4,766.30 per ounce during Friday afternoon trading hours in Singapore. Silver advanced 0.9% to reach $76.03 per ounce. Platinum declined 1.5%, while palladium posted gains. Copper futures registered modest increases across both London Metal Exchange and US trading platforms.
Iran’s contradiction of claims regarding Islamabad negotiations introduced additional uncertainty to market conditions heading into the weekend period.
