Gold Prices Rise Amid Dollar Weakness and Geopolitical Tensions

BENGALURU, India — Gold prices rose on Friday as a weaker dollar and persistent geopolitical tensions lifted demand for the precious metal. As of 1013 GMT, spot gold was trading at $3,350.87 per ounce, up 0.4%, after experiencing a 1.1% drop in the previous session.

Despite the recent gains, gold has seen a slight decline of 0.1% for the week. U.S. gold futures also saw an uptick, rising 0.3% to $3,356.70. A softer dollar makes gold cheaper for buyers using other currencies, enhancing its appeal.

The European Union recently announced its 18th package of sanctions against Russia in response to its invasion of Ukraine. The new measures target Russia’s oil and energy industries, emphasizing ongoing geopolitical instability. Han Tan, chief market analyst at Nemo.Money, commented, “Gold is rising on the softer US dollar, yet remains hemmed in by this week’s U.S. data releases which buffered the notion that the world’s largest economy remains resilient.”

This week’s economic data from the U.S. exceeded expectations, which has influenced market sentiment. Mixed comments from U.S. President Donald Trump regarding Federal Reserve Chair Jerome Powell have also affected perceptions of the Fed’s independence, adding further uncertainty.

Additionally, other precious metals like platinum and palladium have become increasingly popular as alternatives to gold. Adrian Ash, head of research at BullionVault, stated, “In precious metals, the carnival has moved on from safe-haven gold to silver, platinum, and palladium as pro-growth, industrial alternatives.” Spot platinum was up 0.3% to $1,461.77 per ounce, its highest point since August 2014, while palladium soared 4% to $1,329.88, marking its highest since August 2023.

As the market continues to navigate through these dynamics, silver prices also rose 0.5% to $38.31 per ounce, reflecting ongoing shifts in investment strategies within the precious metals sector.