Gold prices rose during trading on Friday, regaining the $4,500 per ounce level, supported by the decline of the US dollar, amid continued geopolitical tensions related to the conflict between the United States and Iran, which continue to cast a shadow over global markets and increase volatility.
The yellow metal recorded a rise of more than 3% to reach about $4,527 per ounce, after it had fallen by about 2.75% in the previous session, benefiting from a limited decline in the US currency after it had touched high levels earlier.
In contrast, US economic data presented a mixed picture, with consumer confidence falling to 53.3 points compared to expectations of 54 points, and future consumer expectations declining, while short-term inflation expectations rose to 3.8%, reflecting continued inflationary pressures.
On the geopolitical front, the US president announced a postponement of military strikes on Iranian energy facilities for an additional ten days, while talks continued. However, this move did not fully calm the markets, given the continued uncertainty about the future of the conflict.
Reports also indicated the possibility of a strengthened military presence in the region, which keeps the possibility of escalation alive if diplomatic efforts fail, further increasing the state of anticipation in global markets.
In a related context, the Strait of Hormuz remains a focal point in the crisis, with restrictions on it continuing, which keeps oil prices high and increases concerns about inflation, prompting markets to reprice interest rate expectations towards further tightening by major central banks.
This was reflected in the rise in US Treasury yields, with the yield on 10-year bonds approaching 4.45%, the highest level since July 2025, putting pressure on gold as a non-yielding asset.
Despite the support gold receives from the weakening dollar and geopolitical tensions, the strength of the US currency and rising yields are limiting its gains, especially with increasing expectations that interest rates will remain high for a longer period.
Technically, prices are showing some stability after falling to their lowest levels in four months, but the overall trend is still bearish, with prices remaining below key resistance levels, while the $4,300 level represents important support in the near term, followed by the $4,100 level as a key support level.