Gold Heads for Weekly Loss on Hawkish Fed, Peace Deal Uncertainty
Gold fell as much as 2.1% on Friday, heading for a third weekly loss, as hawkish Fed expectations and delays in Middle East peace talks weighed on sentiment.
Gold prices dropped sharply on Friday, falling as much as 2.1%, and are on track for a third consecutive weekly loss. The decline comes as traders weigh a hawkish stance from the Federal Reserve and renewed uncertainty over a permanent Middle East peace deal.
The US and Iran postponed the start of talks over a lasting agreement and Tehran's nuclear program after fighting intensified in southern Lebanon, a potential setback to efforts to end the war. Meanwhile, a flurry of ships carrying stranded oil began to exit the Strait of Hormuz after an interim accord was signed on Wednesday, easing fears of prolonged energy shortages, though traffic appeared to thin early. The combination of geopolitical uncertainty and a hawkish Fed outlook has pressured gold, which typically struggles in a rising rate environment.
For gold traders, the key driver remains the interplay between interest rate expectations and geopolitical risk. A hawkish Fed tends to boost the US dollar and real yields, both headwinds for non-yielding gold. However, any escalation in Middle East tensions could quickly reverse the selling pressure. Live gold prices and charts on NowPrice show how the market is reacting to these crosscurrents. Looking ahead, traders will focus on upcoming US economic data and any further developments in peace negotiations, which could determine whether gold finds support or extends its losses.