Gold Eases to One-Week Low as Oil and Dollar Rise
Synopsis
The precious metal came under pressure as escalating tensions in the Middle East pushed oil prices higher and supported the US dollar.
Gold prices fell one week to their lowest level since Tuesday, putting the price of bullion on a downward trend as demand for safe-haven assets faded in the face of higher oil prices and a stronger dollar. Investors also turned to the minutes of the next Fed meeting, which might offer new thoughts on the path for US interest rates.
Spot gold was down about 1.4% from the prior session in Friday's trading at US$4,108.56 an ounce. The drop was caused by the renewed U.S. military operations against Iran and the lifting of a license that enabled Tehran to sell oil to foreign markets.
The advances pushed up US crude prices by nearly 3% and continued to raise prospects of inflation staying sticky as high energy prices remain.
Dollar Strength Overcomes Safe Haven Demand
The US dollar's strength pushed bullion to new lows as it made gold more expensive for foreign purchasers. Geopolitical turmoil was the main reason that pushed precious metals prices up; however, currency activity and anticipation of higher borrowing costs still played a major role in trading.
What is now being awaited is the minutes of the most recent Federal Reserve meeting to gauge whether officials believe there are inflation threats that warrant keeping rates high. Generally, the higher the rate, the less desirable gold will be, since it does not pay interest.
Australian Gold Sector Watches Global Pricing
The transaction is also receiving close monitoring attention in Australia where prices for gold affect the outlook for listed producers such as Northern Star Resources ASX: NXG, Evolution Mining ASX: EVN and Newmont Corporation (ASX-listed through CDI).
While a weaker Australian dollar may help protect domestic miners from falling gold prices in the United States, an extended period of price declines for bullion may have an impact on investor confidence across the ASX resources group.
The World Gold Council's Gold Demand Trends Q1 2026 report says that around the world demand for gold has climbed to 1,231 tonnes in the first quarter, a rise of 2% over the previous year.
Despite historically high prices, the central banks' purchases of 244 tonnes during the quarter were aimed at building up stocks for future demand.
Other precious metals rose and fell mixed. Spot silver advanced 0.8 percent to US$60.47 an ounce, and the prices of platinum and palladium metals were little changed as investors waited for new policy signals from the United States.
Source: Reuters
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Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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