Gold prices held below $4,700 per ounce on Friday, edging up slightly after a two-day decline, as rising energy costs and persistent inflation pressures tempered its appeal.
The precious metal stood at $4,667.42 per troy ounce, down 10.7% over the past month, though still more than half higher than a year ago.
The recent volatility comes amid surging oil and gas prices linked to ongoing tensions in the Middle East, which have fed broader inflation concerns and encouraged investors to favor the U.S. dollar and government bonds over metals.
Central banks maintained a cautious stance this week. The Federal Reserve left rates unchanged, signaling that cuts are unlikely until inflation eases.
Similarly, the European Central Bank, Bank of England, and Bank of Japan held policy steady while maintaining a hawkish bias. Markets have pushed expectations for U.S. rate cuts to 2027 and are pricing in potential hikes from the ECB and BOE later this year.
Gold’s short-term outlook is constrained by higher yields and a strong dollar, though longer-term trends could support recovery if inflation persists and monetary tightening moderates.
