Gold prices held steady above the $4,600 per ounce level on Friday, supported by a weaker US dollar following Japan-linked intervention in currency markets, but remained on track for a second consecutive weekly decline amid shifting rate expectations and persistent inflation concerns.
Spot gold was trading around $4,590–$4,620 per ounce on May 1, 2026, after a modest rebound in the previous session, according to market data.
The metal gained in the prior session as the dollar softened, with traders attributing the move to reports of Japanese intervention in foreign exchange markets, which typically boosts dollar-priced assets like gold.
Despite the bounce, bullion is still down on a weekly basis, with markets weighing broader macroeconomic risks, including inflation pressures driven by energy markets and geopolitical tensions linked to Middle East supply concerns.
Oil prices remain elevated due to ongoing uncertainty around the Strait of Hormuz and broader Iran-related tensions, reinforcing expectations that central banks may keep interest rates higher for longer, a scenario that tends to limit demand for non-yielding assets such as gold.
Central banks, including the Federal Reserve and other major peers, have maintained a cautious stance, signalling that inflation risks remain active even as growth moderates.
On the supply side, data from the World Gold Council shows continued central bank accumulation in early 2026, underscoring gold’s role as a strategic reserve asset despite short-term price volatility.
Analysts say gold’s near-term direction will depend on the balance between dollar strength, real yields, and geopolitical risk flows, with volatility expected to persist.
