Gold steadies but heading for second straight weekly loss
Spot gold was little changed at US$4,207.30 per ounce at 1106 GMT, though it was down more than 2 percent over the week. U.S. gold futures edged higher, rising 2.8 percent to US$4,227.40.
The precious metal has come under pressure in recent sessions as markets reassess the outlook for monetary policy, with investors increasingly pricing in higher-for-longer interest rates from the European Central Bank and the U.S. Federal Reserve.
Higher interest rates typically weigh on gold, which does not yield interest, making it less attractive compared with bonds and other income-generating assets.
Analysts say recent volatility in energy markets has also influenced sentiment. Oil prices fell on Friday amid reports of potential diplomatic progress between the United States and Iran, easing some concerns about supply disruptions that had previously supported safe-haven demand for gold.
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Despite short-term stability, gold remains sensitive to inflation expectations and central bank policy signals. Market participants are closely watching upcoming economic data releases and the Federal Reserve’s policy meeting scheduled for June 16–17.
The U.S. central bank meeting is the first to be led by new Chair Kevin Warsh, adding further attention to any shifts in policy tone.
Recent data showing higher-than-expected U.S. producer prices and inflation rising above 4 percent in May have reinforced expectations that policymakers will maintain a restrictive stance for longer.
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Gold’s performance has also been influenced by geopolitical developments, including fluctuating tensions in the Middle East. Earlier concerns that conflict-related energy disruptions could drive inflation higher had briefly supported bullion prices, but those gains have since faded.
Some analysts have revised their outlook for the metal. ANZ, for example, lowered its year-end gold price forecast by $400 to $5,200, citing increased volatility and shifting macroeconomic conditions.
Other precious metals were mixed on Friday. Silver slipped 0.7 percent to US$66.90 per ounce and platinum declined 0.3 percent to US$1,715.05, with both metals heading for weekly losses. Palladium bucked the trend, rising 2.6 percent to US$1,302.55 and set for a weekly gain.
Overall, traders say gold’s near-term direction will depend largely on inflation trends and central bank messaging, with markets still weighing whether price pressures will remain elevated enough to keep monetary policy tight through the remainder of the year.
