Gold advanced on the day but registered a weekly loss, as war-related inflation worries persisted. Spot gold rose 0.38 per cent to $4,710.30 an ounce. U.S. gold futures rose 0.2 per cent to $4,714.40 an ounce. However, gold rate is down more than 2 per cent so far this week. U.S. gold futures for June delivery settled at 0.4 per cent higher to $4,740.90. Spot silver rose 1.4 per cent to $76.49 per ounce, platinum added 0.5 per cent to $2,015.98 and palladium gained 2.2 per cent to $1,499.75.
Oil prices ebbed on Friday, but those benchmarks have surged this week after a second round of talks between the U.S. and Iran failed to materialize, and as Iran flaunted its control over the Strait of Hormuz.
Higher oil prices can stoke inflation, driving up chances of higher interest rates. "Gold saw a fall (this week) because the oil price was going higher, so were expectations of higher rates, the dollar, yields, all correlated," said UBS analyst Giovanni Staunovo.
Benchmark 10-year U.S. Treasury yields were up 1.5 per cent this week, raising the opportunity cost of holding gold, while the dollar was on track for its first weekly gain in three, making bullion more expensive for holders of other currencies.
The precious metal slumped throughout March as the U.S.-Iran war strengthened the dollar and stoked fears of higher inflation that weighed on demand for gold.
"It's really just a headline-driven market because of all the uncertainty - the headlines right now seem to favour some kind of peace agreement with Iran, the market is looking at a net positive situation currently. Energies are coming off a little bit too," said Daniel Pavilonis, senior market strategist at RJO Futures.
Benchmark 10-year U.S. Treasury yields were up 1.6% this week, raising the opportunity cost of holding gold, while the dollar was on track for its first weekly gain in three, making bullion more expensive for holders of other currencies.
Oil prices ebbed on Friday, but those benchmarks have surged this week after a second round of talks between the U.S. and Iran failed to materialize, and as Iran flaunted its control over the Strait of Hormuz.
Higher oil prices can stoke inflation, driving up chances of higher interest rates. "Gold saw a fall (this week) because the oil price was going higher, so were expectations of higher rates, the dollar, yields, all correlated," said UBS analyst Giovanni Staunovo.
Benchmark 10-year U.S. Treasury yields were up 1.5 per cent this week, raising the opportunity cost of holding gold, while the dollar was on track for its first weekly gain in three, making bullion more expensive for holders of other currencies.
The precious metal slumped throughout March as the U.S.-Iran war strengthened the dollar and stoked fears of higher inflation that weighed on demand for gold.
"It's really just a headline-driven market because of all the uncertainty - the headlines right now seem to favour some kind of peace agreement with Iran, the market is looking at a net positive situation currently. Energies are coming off a little bit too," said Daniel Pavilonis, senior market strategist at RJO Futures.
Benchmark 10-year U.S. Treasury yields were up 1.6% this week, raising the opportunity cost of holding gold, while the dollar was on track for its first weekly gain in three, making bullion more expensive for holders of other currencies.
