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Gold prices rose to $4,732-$4,733 during the Asian session on Friday, supported by renewed tensions in the Strait of Hormuz and speculation about a potential US-Iran peace deal. Despite a previous day's pullback from a two-week high, the metal attracted fresh buyers, reflecting safe-haven demand amid geopolitical uncertainties. The US dollar showed hesitation ahead of the upcoming Non-Farm Payrolls (NFP) report, which could influence gold's trajectory.
The move highlights gold's role as a hedge against geopolitical risks and currency volatility. A weaker USD, driven by dovish Fed expectations, could further boost gold prices. Traders are closely watching the NFP data for clues about Federal Reserve policy and its impact on the dollar. Additionally, developments in the Strait of Hormuz remain a critical risk factor for markets.
For MENA investors, the interplay between geopolitical tensions and central bank policies will shape gold's performance. The region's strategic location near the Hormuz Strait makes it particularly sensitive to regional instability. Traders should monitor the NFP report on Friday and any updates on US-Iran negotiations for potential market-moving implications.
