Gold fell to around $3,350 per ounce on Friday, hitting a one-week low and heading for its first weekly decline in three, as investors sold bullion to cover losses in other markets amid escalating Middle East tensions. Israel and Iran continued trading attacks, with Israel intensifying strikes on strategic and government targets in Tehran after reports of an Iranian missile hitting a major Israeli hospital. Investors also focused on the White House, with President Donald Trump weighing direct military action against Iran, and a decision expected within two weeks. Meanwhile, the Federal Reserve held rates steady earlier in the week and signaled two cuts by year-end, though Chair Jerome Powell warned that tariffs could continue to push prices higher. Fresh Fed forecasts pointed to weaker growth, higher inflation, and lower employment in 2025. Stubborn inflation may limit rate cuts, weighing on non-yielding gold.
Silver prices fell around 2% to $35.60 per ounce on Friday, marking a third consecutive session of losses as traders took profits following a sharp rally that pushed prices to over 13-year highs. Investors also sold precious metals to cover losses elsewhere, as an escalating conflict in the Middle East spurred widespread selloffs. Additionally, the US Federal Reserve held interest rates steady this week and reiterated a cautious, data-dependent approach, warning that President Donald Trump’s new tariffs could fuel inflation and complicate the economic outlook. On the supply front, sentiment was further pressured by confirmation of a major discovery in Argentina—one of the largest copper, gold, and silver deposits in three decades—estimated to hold 13.2 million tons of copper and over 80 million ounces of gold and silver combined.
