Gold Rises to Seven-Week High Amid Weaker Oil Prices and Peace Hopes
Gold prices rose on Friday and were headed for their biggest weekly gain since January. The metal was up 0.4% at $4,254.11 per ounce, after hitting a seven-week high in the previous session.
The price increase is attributed to weaker oil prices, which helped ease inflation concerns and reduced expectations of higher-for-longer interest rates. Gold is often seen as an inflation hedge, but elevated interest rates tend to weigh on its appeal as it offers no yield.
Analysts at StoneX believe that the current support level of $4,000 has proven solid, and bulls are waiting for dips to take advantage of a correction higher towards $4,600. The upcoming US nonfarm payrolls report may provide some short-term noise, but price action suggests gold wants to rally.
US President Donald Trump's comments on the war with Iran also contributed to the rise in gold prices. He stated that he believed the war would be over soon and that armed forces were experiencing issues with supplies of some weapons.