Gold Poised for Third Consecutive Weekly Advance Amid Iran Ceasefire Uncertainty

TLDR

• Gold maintained levels around $4,765/oz, positioned for a third consecutive weekly advance of approximately 2%
• Uncertain US-Iran ceasefire agreement and scheduled weekend negotiations in Islamabad maintain market vigilance
• Global central banks, notably Poland and China, persist with strategic gold acquisitions
• Declining dollar strength this week enhanced gold affordability for international purchasers, bolstering valuations
• Friday’s US CPI release may influence Federal Reserve monetary policy projections

Precious metal prices remained stable around $4,765 per ounce on Friday, positioning gold for its third consecutive weekly advance. The approximately 2% weekly increase unfolds as market participants closely monitor the unstable ceasefire arrangement between Washington and Tehran.

The truce agreement, announced in recent days, initially provided market relief. However, complications emerged rapidly. Military operations persisted in Lebanese territory, while Iranian officials disputed reports that their diplomatic team had reached Islamabad for planned weekend discussions with US representatives.

President Trump expressed cautious optimism regarding potential peace negotiations. Simultaneously, he issued warnings to Iran concerning charges imposed on maritime vessels navigating the Strait of Hormuz, a critical waterway for international petroleum transport that remains predominantly inaccessible.

Notwithstanding this week’s positive momentum, gold has declined roughly 10% since hostilities commenced in late February. Market participants liquidated gold holdings to offset portfolio losses elsewhere, diminishing its traditional safe-haven attractiveness.

Oil markets faced their most substantial weekly decline since June. Equity markets rebounded throughout the week, while the US Dollar Index dropped over 1%, rendering gold more accessible to non-American investors.

Central Banks Maintain Accumulation Strategy

Continued central bank purchases have provided consistent underlying support for gold markets. Polish authorities confirmed their commitment to maintaining 700 tons in gold reserves. Chinese institutions acquired approximately 5 tons during March, representing their most significant single-month acquisition in over twelve months.

ANZ Banking Group projects central bank purchases will total roughly 850 tons throughout 2026, with recent price corrections likely stimulating additional institutional buying.

Escalated oil prices stemming from regional conflict have amplified inflation forecasts. This development has prompted market speculation that monetary authorities might postpone interest rate reductions or implement increases instead, creating challenges for gold given its non-yielding nature.

Inflation Data Takes Spotlight

US consumer expenditure registered minimal growth in February, predating the conflict’s onset, per Bureau of Economic Analysis figures. March’s consumer price index report released Friday was anticipated to reveal the steepest monthly advance since June 2022.

Elevated inflation figures could strengthen rate hike expectations, creating downward pressure on gold valuations. Conversely, protracted conflict could suppress economic expansion and ultimately necessitate rate cuts, potentially benefiting precious metals.

Spot gold traded at $4,766.30 per ounce Friday afternoon Singapore trading hours. Silver advanced 0.9% reaching $76.03 per ounce. Platinum declined 1.5%, while palladium posted gains. Copper futures registered modest increases across both London Metal Exchange and US trading platforms.

Iran’s contradiction of ongoing Islamabad negotiations introduced renewed uncertainty as markets approached the weekend.

The post Gold Poised for Third Consecutive Weekly Advance Amid Iran Ceasefire Uncertainty appeared first on Blockonomi.