Despite slight corrections on Friday, gold and silver prices have fallen sharply by over 7 per cent in the past week, driven by the escalating Iran-Israel conflict that has fuelled global uncertainty in energy markets.
The decline has persisted for three consecutive weeks, fuelled by a stronger US dollar, unchanged Federal Reserve interest rates, and surging crude oil prices amid intensifying tensions in West Asia.
Spot gold rose 0.2 per cent to $4,657.50 per ounce on Friday, while US gold futures for April delivery climbed 1.1 per cent to $4,657.90.
Nevertheless, gold prices have dropped more than 7 per cent this week overall. Spot silver edged up 0.1 per cent to $73 per ounce.
The price slide has been exacerbated by Iran's effective control and partial disruption of the Strait of Hormuz, which handles around 20 per cent of global oil trade.
While rising oil and transport costs weigh on broader assets, forcing investors to shift capital, precious metals — typically safe havens — have faced pressure from liquidity needs and a robust dollar. In other commodities, spot platinum rose 0.1 per cent to $1,972.80, and palladium gained 0.4 per cent to $1,452.21.
Official data indicate gold is on track for its biggest weekly loss in six years, as Middle East conflict has boosted energy prices and tempered expectations for rate cuts.
In international markets, gold traded near $4,685 per ounce, down nearly 7 per cent this week— the steepest drop since March 2020.
The precious metal, widely seen as a haven, has declined every week since the US and Israel struck Iran last month.
Silver, trading above $73 per ounce, remains on course for a third straight weekly loss as rising energy costs tied to Middle East tensions heighten inflation fears.
Although silver serves as an industrial metal and secondary safe haven, its lower yield has contributed to recent weakness.
Also read: Gold, silver fall as Fed holds rates; crude oil above $112
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