Gold prices experienced a slight decline on Friday, yet the precious metal remains on track for a third consecutive weekly gain, supported by a U.S.-Iran ceasefire agreement and reduced fears of imminent Federal Reserve rate hikes. Spot gold fell 0.3% to $4,748.31 per ounce, while June futures dropped 1% to $4,772.17. The dollar, although stable, is poised for its largest weekly decline since January, reflecting optimism surrounding the diplomatic talks between the U.S. and Iran.

Market participants are closely monitoring geopolitical tensions, particularly Israeli strikes in Lebanon and the blockade of the Strait of Hormuz, which have disrupted shipping flows significantly. With only seven vessels reported passing through the strait in the past 24 hours, compared to a typical 140, these developments could further impact oil prices and inflation metrics, especially ahead of the upcoming U.S. CPI report, expected to show a 1% increase.

For investors, the evolving geopolitical landscape underscores the importance of monitoring gold as a hedge against inflation and market volatility, particularly as energy costs rise amid ongoing conflicts.

Source: nasdaq.com