Gold on track for three-week win streak ahead of U.S.-Iran talks

Gold prices edged lower on Friday but remained on track for a weekly gain, continuing their recovery from steep losses in March triggered by the Middle East conflict. A fragile U.S.-Iran ceasefire has provided some support to bullion, though investors remain cautious ahead of critical peace talks scheduled for this weekend.

At 16:35 ET (20:35 GMT), spot gold fell 0.4% to $4,747.38 per ounce, while futures slipped 1% to $4,770.72 per ounce. Spot gold was up 1.6% for the week, poised for a three-week winning streak, while futures were up 2%, aiming for a two-week win streak.

President Donald Trump's announcement of a two-week ceasefire with Iran earlier this week has stabilized global markets, but the deal has shown signs of instability. Continued Israeli strikes on Iran-aligned Hezbollah targets in Lebanon have raised doubts about the ceasefire's longevity. U.S. and Iranian officials are set to meet in Pakistan on Saturday, though Iranian media reports suggest talks may be delayed due to ongoing Israeli attacks.

The March U.S. consumer price index (CPI) report revealed that the Iran war's effects are already impacting U.S. prices. The CPI rose 3.3% year-over-year, up from 2.4% in February, driven by a 10.9% month-over-month surge in energy prices. Core CPI, which excludes volatile food and energy prices, stood at 2.6% year-over-year and 0.2% month-over-month, both lower than expected. The data suggests the Federal Reserve may maintain current rates, a favorable environment for gold.