Gold Holds Three-Month Highs Amid US-Iran Tensions

Gold prices maintained their three-month highs on Friday, reaching a weekly gain of over 5%, due to a weaker U.S. dollar and lower long-dated Treasury yields. This move was triggered by the U.S. Treasury's announcement to increase its purchases of long-dated government debt from $2 Bn to at least $4 Bn, which pushed yields lower and supported gold.

Tensions between the U.S. and Iran over control of the Strait of Hormuz continued to escalate, with President Donald Trump threatening to significantly increase economic pressure on Iran. This heightened uncertainty contributed to a surge in WTI Crude Oil prices for a second consecutive week.

Copper futures recovered from earlier weekly losses, climbing above $6.50 per pound as tight physical supply continued to support prices. Top producer Chile expects copper output to decline this year due to ongoing disruptions in mining operations and development projects.