Gold Gains in Asia as Dollar Softens and Iran Tensions Ease

Gold and Silver Rebound in Asian Session

Spot gold rose 1.90% to $4,456 per ounce in Asian trading on Friday, while gold futures increased 1.84% to $4,490 per ounce. Silver also posted strong gains, rising 2.72% to $69.73 per ounce.

The latest move followed a pullback from record highs earlier in the week, when heightened concerns over a potential Iran war had sharply boosted safe-haven demand for gold. Even with Friday’s advance, gold was still set for a weekly decline as some of that geopolitical risk premium unwound.

The U.S. Dollar Index edged down 0.05% to 99.85, providing additional support to dollar-denominated precious metals by making them slightly cheaper for holders of other currencies.

Iran Developments and Policy Outlook Support Longer-Term Gold View

Market sentiment improved after President Donald Trump signaled progress in peace talks with Iran and extended the deadline for potential strikes on Iran’s energy infrastructure to April 6. Trump’s announcement that Iran had allowed 10 oil tankers to pass through the Strait of Hormuz as a goodwill gesture further reduced immediate fears of supply disruption and contributed to a partial easing of the geopolitical premium in gold.

Despite this short-term de-escalation, analysts cited in the report noted that gold’s longer-term outlook remains underpinned by several risk factors. These include persistent uncertainty surrounding the Iran conflict, the possibility of inflationary pressures stemming from higher oil prices, and expectations that the Federal Reserve may need to keep interest rates steady or even consider further hikes if inflation accelerates.

Reflecting ongoing concerns about inflation linked to the Iran war’s impact on energy markets, the yield on the 10-year U.S. Treasury rose to 4.43%. Higher yields point to elevated inflation expectations, which can support demand for gold as an inflation hedge over the longer term, even if near-term price action remains sensitive to shifts in geopolitical risk and currency movements.