Gold Rises Slightly, Dollar Weakens Amid Iran Headlines
Gold prices (XAU/USD) edged higher on Friday (April 24), reversing an intraday decline as the US dollar (USD) moderately weakened and the market responded to the latest developments in US-Iran tensions. Despite the rebound, upside room remains limited due to persistent macroeconomic headwinds.
At the time of writing, XAU/USD was hovering around US$4,730 after hitting an intraday low of US$4,657. On a weekly basis, gold is still down nearly 2%, putting the precious metal on track for a negative close, despite a late-session recovery.
The USD's weakness followed reports that Iranian Foreign Minister Abbas Araghchi was scheduled to arrive in Islamabad Friday evening, according to Al Arabiya. IRNA stated that the visit was for talks with Pakistani officials, not with the US for now, but the headline raised limited hopes for dialogue and boosted gold demand.
On the other hand, the main pressure came from the surge in oil prices due to tensions in the Strait of Hormuz, which raised inflation concerns and reinforced the perception of "higher for longer" interest rates, particularly in the US. WTI rose more than 10% this week and held near US$93/barrel, conditions that tend to support the USD and yields, thus limiting gold's recovery.
The market is also weighing geopolitical dynamics following US President Donald Trump's announcement of a ceasefire extension, although friction related to the blockade in Hormuz remains a source of volatility. Data-wise, a University of Michigan survey showed consumer sentiment rose to 49.8 in April (above estimates), while 1-year inflation expectations were 4.7% and the 5-year outlook was 3.5%. With the combination of high oil prices and geopolitical uncertainty, gold's movement is expected to remain heavily headline-driven, with the USD and policy expectations the main constraints on further gains. (gn)*
Source: Newsmaker.id
