Gold Glimmers Despite Dollar's Rise: Market Awaits Inflation Insights

Gold prices rose on Friday but faced a weekly decline due to a strengthening dollar. Investors await U.S. inflation data for Federal Reserve policy indications. Tensions between the U.S. and Iran influence central bank gold holdings. Interest rate decisions remain pivotal as traders adjust expectations amidst volatile markets.

Gold prices experienced a moderate increase on Friday, though they're on track for a weekly decline as the dollar surged near a one-month peak. Investors are keenly awaiting U.S. inflation data to gauge the Federal Reserve's next steps in its monetary policy adjustments.

Spot gold appreciated by 0.4% to hit $5,020.95 per ounce as of 0701 GMT but logged a weekly decrease of approximately 0.5%. Meanwhile, U.S. gold futures for April delivery rose by 0.8%, reaching $5,037.60. This comes as geopolitical tensions remain high, particularly between the U.S. and Iran, influencing central bank decisions on gold as a secure asset.

In addition to the geopolitical backdrop, traders have adjusted their expectations regarding interest rate changes for June, reflecting broader economic indicators like inflation. U.S. Personal Consumption Expenditures data will be pivotal in shaping future policy directions. In parallel markets, spot silver, platinum, and palladium also recorded price upticks amidst mixed global demand.