Gold up more than 1%, poised for fourth straight weekly gain

Gold prices gained more than 1% on Friday and headed for a fourth consecutive weekly gain, aided by a softer dollar and comments from Iran’s foreign minister that passage through the Strait of Hormuz remains open during the ceasefire.

Spot gold was up 1.2% at $4,846.28 per ounce at 8:59 a.m. ET (1259 GMT) and up 2% so far this week. U.S. gold futures rose 1.2% to $4,863.80.

The U.S. dollar was headed for a weekly decline, making bullion more attractive to holders of other currencies.

“Optimism around renewed peace continues to support risk appetite, with gold increasingly trading more like a risk asset… Part of that optimism stems from expectations that the war’s end will suppress oil prices and diminish inflation risks,” said Peter Grant, vice president and senior metals strategist at Zaner Metals.

“There’s still a long way to go before confidence in the longer term uptrend (in gold) is fully revived, so the trade is taking a cautious approach.”

India belatedly lists banks authorised to import gold and silver

U.S. President Donald Trump said a deal to end the war in Iran could be reached soon while Iran’s foreign minister said that passage for all commercial vessels through the Strait of Hormuz is completely open for the remainder of the ceasefire.

Gold prices slipped after the United States and Israel launched strikes on Iran in late February, with surging energy prices stoking inflation fears and leading markets to scale back expectations for interest rate cuts. Because gold does not yield interest, it typically becomes less attractive when borrowing costs are elevated.

Oil prices were almost 10% lower on Friday.

Elsewhere, Indian banks have halted gold and silver orders from overseas suppliers, with tons of the metals stuck at customs as a formal government order has not been issued authorising imports, trade sources said.

Spot silver rose 3.8% to $81.41 per ounce, and was up more than 7% for the week.

Platinum was up 3.2% at $2,152.77, while palladium added 2.4% to $1,588.35. Both were on track for weekly gains.