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Gold Rebounds as Dollar Weakens and Iran Standoff Keeps Pressure on Prices

Rate expectations staying high limit how far a non‑interest‑paying metal can rally.

Overview

  • Spot gold climbed back into the mid‑$4,500s per ounce following Thursday's suspected yen‑buying that knocked the dollar lower and made bullion cheaper for overseas buyers.
  • Traders scaled back 2026 rate‑cut bets after a Fed meeting where three policymakers opposed an easing bias and Jerome Powell said he would step down as chair while staying on the board.
  • Oil jumped to multi‑year highs after reports of fresh U.S. military options on Iran, as President Trump kept a naval blockade and Iran's leader said Tehran would control the Strait of Hormuz.
  • Bloomberg reported Friday that Iran sent a proposal to the U.S. through Pakistan, which eased oil and gave gold a brief lift, though trading stayed choppy.
  • Despite short‑term swings, World Gold Council data show central banks boosted gold reserves in Q1 at the fastest pace in over a year, and analysts say Chinese buying has helped support prices.