Gold prices edged lower on Friday, heading for a third straight monthly loss, as traders weighed reports of a possible ceasefire between the United States and Iran that could reduce demand for safe-haven assets.
Market Performance
Spot gold fell 0.3% to $1,820.29 per ounce by 10:10 a.m. ET, while U.S. gold futures dropped 0.4% to $1,821.50. The precious metal has lost about 2% so far this month, extending its longest losing streak since mid-2021.
Impact of Ceasefire Reports
According to sources, indirect talks between Washington and Tehran have made progress, with a potential agreement to de-escalate tensions in the Middle East. A ceasefire would likely diminish geopolitical risks, which have supported gold prices in recent months.
Analyst Insight: "The prospect of a US-Iran deal is reducing the safe-haven premium in gold," said Michael McCarthy, chief market strategist at CMC Markets. "If confirmed, we could see further downside as investors rotate into riskier assets."
Other Factors
Gold also faced pressure from a stronger U.S. dollar, which rose 0.2% against a basket of currencies, making bullion more expensive for overseas buyers. Meanwhile, the yield on the benchmark 10-year Treasury note climbed to 1.45%, increasing the opportunity cost of holding non-yielding gold.
Market participants are now awaiting the U.S. nonfarm payrolls report due later in the day for further clues on the Federal Reserve's policy path. Strong employment data could reinforce expectations of tighter monetary policy, weighing further on gold.
Outlook
Despite the recent losses, some analysts see support for gold around the $1,800 level. "Physical demand from central banks and retail investors in Asia could provide a floor," noted analyst Natasha Kaneva of J.P. Morgan. However, she cautioned that a sustained recovery would require a weaker dollar or renewed geopolitical tensions.
In other precious metals, silver slipped 0.5% to $23.45 per ounce, platinum edged down 0.3% to $1,025, and palladium fell 0.6% to $2,380.
