COMEX gold futures rose 0.8% to $2,345.50 an ounce on Friday, rebounding as the market weighed hopes of a potential diplomatic deal between the United States and Iran against persistent inflation and economic uncertainty.
"A potential deal between Iran and the US could reduce geopolitical risk, which might normally decrease gold's safe-haven appeal," a market analyst said. "However, the immediate rebound suggests traders are responding to the deep uncertainty of the negotiations themselves."
The move in gold comes as the White House indicated President Trump will send special envoy Steve Witkoff and his son-in-law Jared Kushner to Pakistan this weekend for peace talks. While the talks signal a potential de-escalation, oil markets have seen prices ease, with Brent crude futures dipping below $100 a barrel. This contrasts with gold's rise, indicating a split in how commodity traders are pricing geopolitical risk.
The rebound pushes gold closer to its all-time intraday high of $2,431.29, set earlier in the month. Investors are balancing the safe-haven appeal of gold against a backdrop of record-low consumer sentiment in the US and a soaring equity market, where the Nasdaq and S&P 500 are reaching new highs driven by a rally in semiconductor stocks. The next key data for markets will be the upcoming Federal Reserve meeting.
This article is for informational purposes only and does not constitute investment advice.
