- Gold prices steady but head for weekly loss amid U.S. policy uncertainty.
- Trump delays decision on U.S. response to Israel-Iran conflict.
- Fed holds interest rates, dampening gold’s appeal as a non-yielding asset.
Gold prices held steady on Friday but were set for a weekly decline as investors weighed the U.S. Federal Reserve’s rate stance and geopolitical developments in the Middle East.
The geopolitical tension between Israel and Iran escalated after a fresh missile attack by Tehran, but markets reacted cautiously as U.S. President Donald Trump postponed any decision on direct U.S. involvement.
Gold Pauses as Market Awaits U.S. Clarity on Iran-Israel Crisis
Gold’s traditional safe-haven appeal was tested this week as geopolitical tensions flared in the Middle East but failed to spark a strong market rally. President Trump’s decision to delay intervention in the Israel-Iran conflict left investors uncertain, creating a holding pattern in commodities markets. Despite Iran’s missile strikes, the absence of U.S. military response tempered the usual rush to gold.
At the same time, the U.S. Federal Reserve’s decision to keep rates steady—while projecting fewer cuts in coming years—added pressure to precious metals. Gold, which offers no interest income, becomes less attractive when rates stay elevated. As a result, futures and spot prices dipped despite global unease.
In contrast, physical demand in India showed resilience. A minor ₹10 increase in domestic gold prices indicated stable interest among buyers, likely driven by festive season expectations and a weakening rupee. However, concerns about rising gold prices contributing to core inflation were flagged by Crisil.
Silver, platinum, and palladium also reflected mixed trends. While silver and platinum slipped in global markets, palladium ended the week with modest gains. Traders remain watchful as upcoming geopolitical and central bank signals could drive the next major move in the precious metals market.
While gold prices dipped this week amid cautious investor sentiment, strong safe-haven demand and central bank interest continue to offer underlying support, keeping the outlook from turning bearish.
“In times of crisis, gold is the last man standing.” – George Gero, RBC Wealth Management
