Gold Prices Poised to Post Weekly Gain as Geopolitical Tensions Ease
Gold prices remained steady on Friday but were poised to post a weekly gain of around 5% as easing geopolitical tensions and softer US economic data supported bullion.
The latest developments in the Middle East, including statements from US President Donald Trump, have contributed to reduced inflation concerns and improved market sentiment.
Additionally, crude oil prices have fallen sharply this week, declining more than 7%, which has eased inflationary pressures and created a favourable backdrop for non-yielding assets like gold.
Weaker-than-expected US economic data, including the ADP National Employment Report, has also boosted sentiment for bullion, as it strengthens expectations that the Federal Reserve could adopt a less hawkish policy stance.
Motilal Oswal has highlighted gold's outlook in the second half of 2026, expecting near-term volatility amid uncertainty over Federal Reserve policy and Middle East tensions. The brokerage recommends a staggered accumulation strategy for long-term investors, warning that gold could correct 6-8% before resuming its uptrend.
Investors will now closely watch the US non-farm payrolls report due later on Friday for fresh clues on the Federal Reserve's interest rate path.