Gold Prices Rise with Weakening Dollar

Gold prices rose on Friday with the support of a weakening dollar. However, concerns that escalating tensions between the US and Iran could increase inflationary pressures and lead to the Federal Reserve (Fed) maintaining its tight monetary policy for a longer period have strengthened expectations that the precious metal will close the week with losses.

Market Situation

Spot gold rose by 0.2 percent to $4.128,92 per ounce. However, the precious metal is expected to lose more than 1 percent on a weekly basis. Gold futures contracts traded in the US are showing a flat trend at $4.139,50.

■The dollar's decline to its lowest level in the last week has made gold more accessible and attractive to investors using other currencies.

■Escalating tensions between the US and Iran have increased inflation concerns, and investors' expectations that the Federal Reserve (Fed) will raise interest rates this year have also gained strength.

Expert Opinion

Gold prices rose on Friday with the support of a weakening dollar. However, concerns that escalating tensions between the US and Iran could increase inflationary pressures and lead to the Federal Reserve (Fed) maintaining its tight monetary policy for a longer period have strengthened expectations that the precious metal will close the week with losses. Markets believe that we are in a critical process that will determine the future of gold prices as the Fed's interest rate hike expectations gain strength.