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Gold rises above $4,050 as the dollar pulls back
FXStreet links the bounce to a modest USD decline, while higher crude prices from renewed Middle East tensions could cap further gains in non-yielding bullion.
Gold prices extended a modest intraday bounce and climbed back above the $4,050 level on Friday, with XAU/USD hitting a fresh daily high during the first half of the European session amid a pullback in the US dollar, according to FXStreet.
The outlet cautions that upside may be limited because crude oil remains elevated on escalating US-Iran tensions, a backdrop that can keep inflation fears alive and support expectations of higher-for-longer US interest rates.
US Central Command said it completed another round of strikes against Iran on Thursday, the 13th consecutive night of operations, targeting sites that include military command centers, drone storage, and communication networks. FXStreet also notes that retaliatory activity has broadened across the region.
FXStreet further points to US data and policy signals, including jobless claims falling to the lowest level since September 1969, which the outlet says reinforces the case for at least one rate hike move by year end, and new Trump tariffs of 10% to 12.5% on 60 trading partners, covering 99.4% of US imports. It adds that these factors can keep pressure on gold despite the dollar dip.
Latest closeGold $4,051.10 ▼2.3%|WTI crude $92.23 ▲6.2%