Gold Trims Losses After Trump’s Iran Strike Delay

Gold prices fell below $4,450 per ounce on Friday, on track for a weekly decline of over 2%, as a stronger-than-expected US jobs report and ongoing Middle East uncertainty kept inflation and interest rate concerns in focus. The May jobs report revealed the US economy added 172,000 jobs, significantly above the forecasted 85,000, while the unemployment rate held steady at 4.3% and annual wage growth moderated to 3.4%, in line with expectations. This prompted investors to increase bets on a Federal Reserve interest rate hike, with markets now pricing in a quarter-point increase by year-end. Meanwhile, investors closely monitored developments in the Middle East, where US President Donald Trump stated that peace negotiations were nearing their final stage. However, Iran’s Foreign Minister dismissed any meaningful progress, and Iran-backed Hezbollah rejected a US-mediated ceasefire proposal.

Gold fell below $4,450 an ounce on Friday and was set for a weekly decline of more than 2%, pressured by ongoing uncertainty in the Middle East that kept inflation risks and interest rate concerns in focus. President Donald Trump said peace negotiations were approaching their final stage and is reportedly reluctant to re-enter full-scale war with Iran despite recent tensions. However, Iranian Foreign Minister Abbas Araghchi said there has been no meaningful progress in the discussions. Iran-backed Hezbollah also rejected a US-mediated ceasefire proposal between Israel and Lebanon, adding to doubts over efforts to de-escalate regional hostilities. The prolonged conflict and continued disruptions to energy flows through the Strait of Hormuz kept oil prices elevated, reinforcing concerns about inflation and the risk of higher interest rates.

Gold steadied above $4,450 an ounce on Friday, holding onto gains from the previous session as hopes persisted that the US and Iran could still reach a diplomatic solution to end the conflict and reopen the Strait of Hormuz. President Donald Trump said peace negotiations were nearing their final phase and is reportedly reluctant to return to full-scale war with Iran despite recent tensions. However, Iranian Foreign Minister Abbas Araghchi said there has been no meaningful progress in the talks. Iran-backed Hezbollah also rejected a US-mediated ceasefire proposal between Israel and Lebanon, raising doubts about Trump’s efforts to bring an end to regional hostilities. Despite the recent support, gold remains on track for a weekly decline as the prolonged conflict and continued disruptions to energy flows through the Strait of Hormuz kept oil prices elevated, fueling concerns about inflation and the prospect of higher interest rates.