Gold prices declined on Friday, positioning themselves for a weekly decrease as elevated oil prices heightened inflation worries and raised concerns about extended higher interest rates amidst stalled U.S.-Iran peace negotiations.
As of 0426 GMT, spot gold was down 0.7% at $4,661.33 per ounce. This marks a 3.5% drop for the week, following a four-week winning streak. U.S. gold futures for June delivery also fell, down 1% to $4,676.50.
Brent crude prices climbed over 17% this week, surpassing $105 a barrel, partly due to the ongoing closure of the key Strait of Hormuz, despite an extension of the ceasefire in Iran. Kelvin Wong, a senior market analyst at OANDA, noted that as long as the risk persists regarding the strait’s closure, oil prices would remain high, exerting downward pressure on gold.
Rising crude oil prices can intensify inflation by increasing transportation and production costs, which could raise the likelihood of interest rate hikes. While gold is deemed a hedge against inflation, higher interest rates tend to make yield-bearing assets more attractive, diminishing bullion’s appeal.
“Gold is still being trapped in this sideways range, between the 50-day moving average at around $4,900 and the 20-day moving average at the $4,645 level,” Wong remarked, emphasizing that the situation is closely tied to developments in the Middle East.
Iran recently demonstrated its control over the strait by releasing footage of commandos boarding a large cargo ship following the breakdown of peace talks that Washington hoped would secure one of the world’s major shipping channels. Former President Trump stated he believed Tehran desired an agreement but acknowledged turmoil within its leadership. He expressed that while he was not rushing for a deal, a military solution would be considered if Iran was unwilling to negotiate.
The U.S. dollar has increased by 0.8% this week, complicating bullion purchases for international buyers. Additionally, benchmark 10-year U.S. Treasury yields have risen over 2%, raising the opportunity cost associated with holding non-yielding gold.
In other precious metals, spot silver fell 1% to $74.69 per ounce, platinum decreased by 1.1% to $1,984.60, and palladium dropped 0.3% to $1,464.02.
Published on April 24, 2026
