The euro edged slightly higher to USD 1.1551, but remained near the lower end of its recent trading range. Pressure on the common currency mainly came from growing market expectations that the U.S. Federal Reserve may maintain a tighter monetary policy stance in the near term.
Gold prices remained under pressure at the start of the week as investors grew more concerned that the Federal Reserve may raise interest rates. At the same time, renewed tensions in the Gulf pushed oil prices higher, fueling inflation concerns and adding further pressure on the precious metal.
The global oil market is facing a new geopolitical risk as Iran threatens to close the Bab el-Mandeb Strait, a strategic shipping route that connects the Red Sea with the Gulf of Aden and the Arabian Sea.
Gold prices experienced a volatile week as geopolitical uncertainty offered only limited safe-haven support, while stronger U.S. labor data, rising Treasury yields, and renewed concerns over higher interest rates pushed the precious metal sharply lower.
Gold and silver prices moved higher in late U.S. trading on Thursday, supported by weaker crude oil prices, softer U.S. Treasury yields and a lower U.S. dollar. Investors are now turning their attention to the U.S. May employment report, which is expected to be released on Friday.
The U.S. dollar continued to hold near a two-month high on Thursday as renewed tensions in the Gulf weakened investors’ risk appetite. Amid rising geopolitical uncertainty, demand for safe-haven assets helped support the greenback.
As of 02:18 GMT, spot gold rose 0.7% to USD 4,461.09 per ounce. U.S. gold futures for August delivery gained 0.5% to USD 4,487.90 per ounce. The weaker dollar made gold, which is priced in U.S. dollars, more affordable for holders of other currencies.
At the time of writing, spot gold was trading around $4,488.30 per ounce, up 0.07%. Spot silver was trading near $75.195 per ounce, gaining 0.44% on the session.
As of 04:20 GMT, spot gold rose 0.5% to USD 4,507.56 per ounce. U.S. gold futures for August delivery also gained 0.7% to USD 4,538 per ounce.
Global financial markets continued to show mixed but notable movements at the end of the week. While world stocks climbed to fresh record highs, oil prices moved toward their steepest weekly decline in nearly two months, as investors grew more optimistic that the United States and Iran could reach an agreement to reopen the Strait of Hormuz and extend their ceasefire.