Gold prices rose modestly on Friday as investors weighed persistent inflation concerns and the possibility of higher US interest rates, reinforcing demand for safe-haven assets.
Spot gold gained 0.3% to US$4,505.57 per ounce by 04:22 GMT. Despite the uptick, the precious metal remained down about 0.1% for the week.
US gold futures also moved higher, rising 0.1% to US$4,535.90 per ounce.
The gains came as markets continued to assess the inflationary impact of higher energy prices and ongoing geopolitical tensions, factors that could influence the US Federal Reserve’s monetary policy path in the months ahead.
Gold is often viewed as a hedge against economic uncertainty and inflation, although expectations of higher interest rates can limit its upside by increasing the appeal of yield-bearing assets.
Other precious metals traded mixed during the session.
Spot silver was little changed at US$75.61 per ounce, while palladium rose 0.5% to US$1,375.63. Both metals remained on track to post weekly gains.
Platinum slipped 0.4% to US$1,914.95 and was headed for a weekly decline.
Market participants are now closely watching upcoming economic data releases and central bank commentary for further clues on inflation trends and interest rate expectations.
