Gold prices edged higher on Friday, as investors remained cautious ahead of further clarity on United States-Iran peace negotiations, with the precious metal continuing to trade below the key US$4,800 level.
Spot gold was up 0.2% at $4,798.04 per ounce by 3:45 pm AEST (5:45 am GMT), extending a period of range-bound trading after repeated failures to sustain gains above $4,800 over the past three sessions.
Market participants have adopted a wait-and-see approach as uncertainty persists around the next phase of diplomatic talks between Washington and Tehran.
With the current two-week ceasefire set to expire on 22 April, attention is firmly on the timing and outcome of upcoming negotiations, leaving gold prices fluctuating within a narrow band.
Despite the modest uptick, gains in bullion have been limited by a rebound in oil prices, as ongoing supply concerns linked to the U.S. naval blockade of the Strait of Hormuz continue to fuel inflationary expectations.
Higher energy prices have renewed speculation that major central banks, including the U.S. Federal Reserve, may need to maintain a tighter monetary policy stance for longer.
Adding to geopolitical tensions, the U.S. Central Command (CENTCOM) said on X late Thursday, “USS Abraham Lincoln transits Arabian Sea as US enforces blockade of Iran’s ports with 12+ ships, 100+ aircraft, 10,000 troops; no vessels violating blockade so far.”
However, downside pressure on the precious metal has been limited by signs of easing tensions elsewhere in the region. A 10-day ceasefire between Israel and Lebanon has provided some support to market sentiment, with investors hopeful that broader de-escalation in the Middle East conflict may be within reach.
This improving risk backdrop has tempered demand for the U.S. dollar as a safe-haven asset, indirectly lending support to gold prices.
