Looking ahead, analysts say market attention will remain focused on geopolitical developments in the Middle East and upcoming US employment data.
Gold prices remained under pressure in Dubai on Friday morning, with 22K gold staying below Dh500 per gram.
The 24K gold price was trading at Dh534.75 per gram, down from Dh538.5 per gram at Thursday’s market close, a decline of Dh3.75.
Among other variants of the precious metal, prices for 22K, 21K, 18K, and 14K gold slipped to Dh495.25, Dh474.75, Dh407, and Dh317.5 per gram, respectively.
Spot gold was trading at $4,448 per ounce, down 0.6%, and heading for a weekly loss amid Middle East tensions and expectations around US interest rate hikes.
Silver also declined, slipping 1.35% to $72.78 per ounce.
Tony Sage said gold prices saw a brief uptick on Thursday, supported by a slight pullback in the dollar and bond yields. However, he noted that the metal remained close to recent lows as investors weighed monetary policy risks against rapidly evolving geopolitical conditions in the Middle East.
He added that although regional tensions remain elevated, recent diplomatic developments have provided cautious optimism that a broader resolution could emerge. A ceasefire agreement between Israel and Lebanon, along with growing political pressure in the US to limit further military involvement, could help ease pressure on gold.
However, Sage said that as long as tensions persist, investors are likely to remain focused on the impact on energy markets, inflation expectations, and monetary policy.
“Elevated oil prices reinforce concerns that major central banks may need to maintain a restrictive stance for longer, placing selling pressure on the precious metal,” he said.
Looking ahead, analysts expect attention to remain on geopolitical developments and upcoming US employment data, which could significantly influence monetary policy expectations. Despite near-term pressure, ongoing central bank gold purchases continue to provide long-term support for bullion.
