Gold prices ticked higher in Asian trade on Friday after two days of gains, but remained on track for weekly losses as investors navigated heightened U.S.-Iran tensions and awaited key U.S. inflation data

Spot gold gained 0.4% to $5,017.85 per ounce by 01:17 ET (06:17 GMT), with U.S. Gold Futures rising 0.8% to $5,036.5.

The yellow metal is set to fall nearly 0.6% this week, despite rising sharply mid-week on safe-haven demand.

Gold’s weekly performance reflected a pullback early in the week when optimism about U.S.-Iran diplomatic talks eased risk aversion, before geopolitical anxiety resurfaced later in the week.

Volumes were light, as Chinese markets were shut for the Lunar New Year holidays.

US-Iran tensions support bullion, PCE inflation awaited

Escalating diplomatic strains between Washington and Tehran kept bullion supported.

U.S. President Donald Trump warned on Thursday that Iran must negotiate a nuclear deal or face unspecified consequences within about 10 to 15 days, underscoring the risk of military action that could disrupt Middle East oil flows and global markets.

Despite geopolitical pressure, gold was held in check by a firmer U.S. dollar and hawkish signals from Federal Reserve minutes that tempered expectations for imminent rate cuts.

The US Dollar Index was poised to jump over 1% this week — its best weekly performance in months, a dynamic that typically weighs on non-yielding assets like gold.

Market focus has shifted to Friday’s release of the U.S. Personal Consumption Expenditures (PCE) Price Index, the Fed’s preferred inflation gauge.

Metal markets edge higher

Other precious and industrial metals also extended gains on Friday.

Silver prices rose 0.4% to $78.80 per ounce, while platinum also gained 0.4% to $2,089.65/oz.

Benchmark Copper Futures on the London Metal Exchange edged up 0.3% to $12,848.20 a ton, while U.S. Copper Futures were largely steady at $5.77 a pound.