Gold prices remained steady during light trading on Friday but were set to decline for the week, pressured by rising oil prices that heightened inflation concerns and bolstered expectations of prolonged high interest rates.
As of 0436 GMT, spot gold dipped 0.1% to $4,614.98 per ounce, marking a weekly loss of approximately 2% after hitting a one-month low on Wednesday. Meanwhile, US gold futures for June delivery also fell 0.1% to $4,626.40.
Trading volumes were low due to public holidays in major gold-consuming countries, China and India. “In the Asian session, the market is going to be quite thin because of public holidays, so we’re really at a bit of a crossroads, waiting for the next catalyst to make a more directional move,” said Kyle Rodda, a senior financial market analyst at Capital.com.
Geopolitical tensions continued to loom large after Iran stated it would respond with “long and painful strikes” on US positions if Washington resumed attacks, reiterating its claims over the Strait of Hormuz. Brent crude prices remained above $110 a barrel as efforts to resolve the Iran conflict reached an impasse.
US inflation accelerated in March due to rising gasoline prices related to the Iran war, reinforcing the expectation that the Federal Reserve may keep interest rates unchanged well into the following year.
Global brokerages have gradually adjusted their earlier forecasts regarding potential US rate cuts in 2026; predictions are now split between minor easing and no cuts amid ongoing inflation risks and cautious monetary policy. Following similar decisions earlier in the week by the Fed and the Bank of Japan, the European Central Bank and the Bank of England also opted to keep interest rates steady on Thursday, while all institutions acknowledged inflation concerns.
Although gold is typically viewed as a hedge against inflation, elevated interest rates aimed at controlling price surges tend to diminish demand for the non-yielding asset.
In the metals market, spot silver increased by 0.4% to $73.99 per ounce, platinum decreased by 0.2% to $1,981.25, and palladium rose by 0.1% to $1,525.36.
Published on May 1, 2026.
