Key Takeaways

  • Gold peaked at $4,475 per ounce during Friday trading before settling near $4,408–$4,417
  • President Trump postponed his Iran energy facility deadline to April 6, citing productive discussions
  • Iranian officials have publicly stated no negotiations with Washington are underway
  • The precious metal has declined over 15% since regional hostilities commenced approximately one month ago
  • Turkey’s central bank liquidated and exchanged roughly 60 tons of gold, valued above $8 billion, within a two-week period

Gold experienced significant gains during Asian market hours on Friday, surging approximately 2% before moderating through subsequent sessions. Spot gold registered gains of about 0.9% at $4,417 per ounce during mid-morning London trading. Futures contracts followed a similar trajectory, advancing roughly 0.8% to reach $4,442.

Micro Gold Futures,Apr-2026 (MGC=F)
Micro Gold Futures,Apr-2026 (MGC=F)

The daily increase still left gold positioned for approximately 1.7% weekly decline.

Market movements followed President Donald Trump’s decision to postpone his ultimatum regarding Iran’s reopening of the Strait of Hormuz. Trump initially warned of strikes against Iranian energy infrastructure should the critical waterway remain blocked. He subsequently moved the deadline to Friday, then extended it once more to April 6 on Thursday.

Trump announced the extension through Truth Social, attributing the delay to Iran’s formal request. He characterized discussions between both nations as “ongoing” and progressing “very well.” He dismissed contradictory media coverage as “erroneous.”

Tehran’s government has publicly refuted claims that any diplomatic discussions with Washington are occurring.

Factors Behind Gold’s Decline During Conflict Period

Gold has experienced over 15% depreciation since regional warfare between Iran and Israel erupted roughly one month ago. This represents a substantial decline for an asset traditionally considered a refuge during periods of geopolitical tension.

Oil markets provide the primary explanation. The near-complete blockage of the Strait of Hormuz has driven petroleum prices dramatically upward. Approximately one-fifth of global oil supply passes through this strategic channel. Elevated crude prices amplify inflation concerns, prompting investors to anticipate prolonged high interest rates from central banks. Gold, an asset generating no income yield, typically underperforms when borrowing costs remain elevated.

Gold achieved record valuations near its January peaks, and market observers suggest these highs likely triggered substantial profit-taking activity.

The US dollar has simultaneously strengthened. The US Dollar Index registered modest gains Friday, hovering around 99.99. Dollar appreciation makes gold costlier for international purchasers using alternative currencies, dampening overall demand.

Central Bank Activity Increases Downward Momentum

Turkey’s central bank liquidated and swapped approximately 60 tons of gold across a two-week timeframe. The transaction value exceeded $8 billion in bullion.

Central bank accumulation had served as a primary catalyst for gold’s rally throughout the previous two years. Major central bank liquidation introduces additional bearish pressure to the marketplace.

Silver remained relatively unchanged Friday at $68.11 per ounce. Platinum and palladium both posted modest advances.

Iran and Israel maintained missile exchanges throughout Friday. Tehran also launched attacks against multiple Gulf nations during Friday morning hours.