Gold Hits All-time High

Gold steadied above $4,600 an ounce on Friday after rising nearly 2% in the prior session, supported by a sharp depreciation in the US dollar following reports that Japan intervened in currency markets. A softer greenback typically lends support to gold, which is priced in US dollars. Despite this, bullion remains on track for a second weekly decline amid dimming prospects for a US-Iran peace deal and expectations that the Strait of Hormuz would not reopen anytime soon. Trump said that the US would maintain its naval blockade of Iranian ports, while Tehran pledged not to abandon its nuclear program and signaled it would retain control of the strait. The resulting energy supply disruption has heightened inflation concerns, reinforcing expectations that major central banks may keep interest rates elevated for longer or potentially tighten further. Meanwhile, data from the World Gold Council showed that central banks increased their gold reserves in the first quarter.

Gold prices rose to above $4,600 an ounce on Thursday, rebounding from one-month lows as dollar weakened and oil prices edged lower. Investors were also monitoring geopolitical tensions after it was reported that US military would brief President Trump on potential action against Iran. Trump said the US would maintain its naval blockade on Iran until a nuclear agreement is reached. The prolonged Middle East conflict and the near-closure of the Strait of Hormuz continued to unsettle global markets, leading traders to dial back expectations for rate cuts this year and instead begin pricing in the possibility of a hike in 2027. Meanwhile, the US Federal Reserve left its policy settings unchanged as widely anticipated, although four officials dissented, highlighting increasing divisions over the policy outlook amid heightened uncertainty tied to the Iran conflict.

Gold traded around $4,550 an ounce on Thursday, hovering at one-month lows as surging energy costs intensified inflation worries and strengthened expectations that major central banks may need to raise interest rates. President Donald Trump said the US would keep its naval blockade on Iran in place until it agrees to a nuclear deal, while Tehran accused Trump of attempting to force the country into submission through economic pressure and internal divisions. The prolonged Middle East conflict and the near-shutdown of the Strait of Hormuz unsettled global markets, prompting traders to scale back bets on rate cuts this year and instead begin pricing in the possibility of a hike by 2027. Meanwhile, the US Federal Reserve left its policy settings unchanged as widely expected, although four officials dissented, underscoring rising divisions over the policy outlook amid heightened uncertainty stemming from the Iran conflict.