Gold up fourth week as Fed cuts bets, Iran truce

Spot gold finished Friday at $4,829 per troy ounce, marking a fourth consecutive weekly gain. COMEX near‑month futures closed at $4,879, up $71 or 1.48% on about 130,000 contracts. Trading during the week ranged from $4,785 to $4,917. Over‑the‑counter weekend quotes held mostly between $4,790 and $4,831, with a 24‑hour gain near $45, or roughly 0.95%.

Market participants cited Iran’s announcement of a 10‑day truce linked to progress on an Israel‑Lebanon ceasefire and the reopening of the Strait of Hormuz as a key factor. The development weighed on oil prices at points during the week, reducing near‑term inflation expectations and putting downward pressure on the U.S. dollar. A softer dollar makes dollar‑priced gold cheaper for buyers using other currencies, supporting demand.

Late in the weekend Iran reported the Strait of Hormuz had been closed again, blaming a U.S. blockade. Former President Donald Trump posted on his social feed, writing, “Iran recently announced that they were closing the Strait, which is strange, because our BLOCKADE has already closed it. They’re helping us without knowing.” Traders balanced the temporary truce against renewed regional risk as they continued to buy into the thin weekend session.

Federal Reserve commentary during the week was interpreted by markets as increasing the likelihood of future rate cuts. Investors monitored upcoming U.S. economic data, including retail sales and purchasing managers index readings, for timing clues on monetary policy. Analysts noted that rate‑cut expectations, together with ongoing geopolitical uncertainty, supported gold prices near record levels.

Economist and gold advocate Peter Schiff wrote on social media that “even if peace talks fail and the war resumes, eventually gold will break from the trend of falling when war escalates and rise no matter what,” reflecting sentiment among some traders that bullion provides a hedge against instability.

Friday’s futures activity generated most of the weekly gains, while the weekend session showed consolidation typical of lower liquidity. Gold was quoted to open Monday around $4,830 per troy ounce.