Shafaq News

Gold prices fell on Friday and were on ‌track for a weekly drop, as elevated oil prices fuelled fears of inflation and higher-for-longer interest rates amid stalled U.S.-Iran peace talks.

Spot gold was down 0.7% at $4,661.33 per ounce, as of 0426 GMT. The metal is down 3.5% so far this week after a four-week winning run.

U.S. gold futures for June delivery fell 1% to $4,676.50.

Brent crude prices have risen over 17% so ⁠far this week to hover above $105 a barrel, as the key Strait of Hormuz remained largely closed despite an extension of the Iranceasefire.

"Gold is still being trapped in this sideways range, ‌between ⁠the 50-day moving average at around $4,900 and at the bottom, the 20-day moving average at $4,645 level," Wong said, adding that "everything now boils down to what's going on in the Middle East."

Iran flaunted its tightenedgripover the strait on Thursday with a video of commandos in a speedboat storming a huge cargo ship, after the collapse ⁠of peace talks that Washington had hoped would open one of the world's most important shipping corridors.

Trump told reporters that he believed Tehran wanted to make a deal but that its leadership was in turmoil. He said ⁠he was in no hurry for a deal, but if Iran did not want one, "I'll finish it up militarily."

The U.S. dollar is up 0.8% so far this week, making greenback-priced bullion more ⁠expensive for other currency holders.

The benchmark 10-year U.S. Treasury yields have gained over 2% this week, increasing the opportunity cost of holding non-yielding bullion.

Spot silver fell 1% to $74.69 per ounce, platinum lost 1.1% to $1,984.60, while palladium was down 0.3% at $1,464.02.

(Reuters)

Only the headline is edited by Shafaq News staff.