Gold rises on softer dollar, but on track for fourth weekly drop

Gold rose ​over 1% on Friday, buoyed by a weaker dollar and bargain hunting, ‌but was on track for a fourth straight weekly decline as surging energy prices fuelled inflation concerns and raised expectations of higher global interest rates. Spot gold rose 1.1% to $4,428.30 per ounce as of 0228 GMT, but bullion ​has fallen about 1.3% so far this week. US gold futures for April delivery ​gained 1.1% to $4,423.40. The dollar eased, making greenback-priced bullion cheaper for holders of ⁠other currencies. “For weeks, gold has been treated as a liquidity asset sold to cover ​volatility and margin calls elsewhere, but at current levels, it is now looking more like a ​value proposition for investors, which is why it’s back in favour today,” said Tim Waterer, chief market analyst, KCM Trade. “However, hawkish central banks wary of persistent oil-driven inflation, continue to act as a heavy ​lid on gold’s ambitions to the upside, keeping any rally firmly in check.” Gold has fallen ​about 17% since the US-Israeli war on Iran began on February 28, pressured by a stronger US ‌dollar, ⁠which has gained more than 2% over the same period. Brent crude held above $105 a barrel, stoking inflation fears, as the conflict has all but halted shipments through the Strait of Hormuz, a major conduit for roughly one-fifth of global crude and LNG flows. Trump says he will pause attacks on Iran’s energy plants Higher oil prices threaten ​to push up ​transport and manufacturing costs, ⁠adding to inflationary pressures. Although inflation typically boosts gold’s appeal as a hedge, high interest rates weigh on demand for the non-yielding ​asset. Traders have fully priced out any US easing for 2026, compared with expectations for ​two cuts ⁠before the conflict erupted, per the CME Group’s FedWatch Tool. President Donald Trump said he would extend a pause on strikes against Iran’s energy facilities into April and that talks with Iran were ⁠going “very well,” ​but an Iranian official dismissed the U.S. proposal to ​end the war as “one-sided and unfair.” Spot silver rose 1.1% to $68.80 per ounce. Spot platinum gained 2.1% to $1,865.13, while palladium ​rose 2.7% to $1,389.80.

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