India, May 29 : Gold prices today moved slightly higher on Friday as investors weighed reports of a possible extension of the U.S.-Iran ceasefire alongside expectations that the Federal Reserve may keep interest rates elevated for longer due to persistent inflation pressures.
Spot gold gained 0.4% to $4,512.79 per ounce by 0113 GMT, putting the metal on track for a modest weekly rise of around 0.1%. U.S. gold futures also advanced 0.2% to $4,543.10.
Bullion had earlier slipped to a two-month low on Thursday before rebounding after reports suggested Washington and Tehran had agreed to extend their ceasefire arrangement and ease restrictions on shipping through the Strait of Hormuz. However, the agreement is yet to receive approval from U.S. President Donald Trump, while Iranian state media said the deal has not been finalised.
Market sentiment remained cautious after fresh economic data showed U.S. inflation accelerated in April at its fastest pace in three years, largely driven by rising energy prices linked to the Iran conflict. The figures strengthened expectations that the Federal Reserve could delay interest rate cuts well into next year.
St. Louis Federal Reserve President Alberto Musalem warned that policymakers may need to raise rates further if inflation fails to cool over the next six months. Separately, New York Fed President John Williams said current monetary policy remains appropriate, although inflation is likely to stay elevated in the near term before easing later this year.
Meanwhile, official data showed China’s net gold imports through Hong Kong surged 81.2% in April compared with the previous month, reflecting strong demand in the world’s largest bullion consumer market.
Among other precious metals, spot silver climbed 0.7% to $76.17 per ounce, platinum added 0.2% to $1,926.18, while palladium rose 0.9% to $1,380.94.
Investors are now awaiting key economic data from Europe later in the day, including inflation readings from France and Germany and Germany’s unemployment figures, for further cues on the global economic outlook.