$XAU Prices edged higher, yet gold is still on track to finish lower overall, mostly because the US dollar is back in control—sitting near its strongest level in about a month. When the dollar rises, gold usually feels the pressure, since it becomes more expensive for buyers using other currencies.
On the day, spot gold rose 0.4% to around $5,020.95 per ounce, but it was still down about 0.5% for the week. April gold futures climbed more sharply, up 0.8% to roughly $5,037.60.
What’s keeping the market tense is what’s coming next: fresh US inflation data. Traders are focused on the PCE inflation report, the Fed’s favorite inflation gauge. If PCE comes in hot, it strengthens the case for rates staying higher for longer—and that’s usually not great for gold.
Fed meeting minutes added fuel to that worry. Some officials signaled they could support more rate hikes if inflation doesn’t cool enough. That has slightly reduced expectations for a June rate cut, which is exactly the kind of shift that makes gold traders nervous.
Still, there’s a quiet support under the market.
A dealer in Singapore said buyers are still interested in stepping in on dips, and central banks may continue adding gold while global
tensions stay elevated—especially with renewed strain between the US and Iran. That tension rose after President Donald Trump warned Iran to agree to a nuclear deal within 10 to 15 days or face serious consequences, with Iran responding by threatening US bases in the region.
Goldman Sachs also weighed in, saying the recent slowdown in central bank gold buying is likely temporary, not a long-term change—though they expect volatility to remain.
In Asia, demand was muted. Indian buyers hesitated because price swings were too sharp, and several markets were quieter due to Lunar New Year closures.
Meanwhile, other metals also moved higher:
Silver gained 0.6% to $78.83
Platinum rose 0.8% to $2,085.64
Palladium added 0.4% to $1,691.62
For now, gold is stuck between two forces: a strong dollar and rate uncertainty pushing it down, while dip buyers and geopolitics keep providing a floor.
