HG MARKETS: 

Gold prices edged higher on Friday and remained on track for a weekly gain as investors weighed improving prospects for a potential U.S.-Iran peace agreement against continued uncertainty surrounding the fragile ceasefire near the Strait of Hormuz.Spot gold rose 0.7% to $4,717 per ounce during early trading, while U.S. gold futures advanced 0.4% to $4,727 per ounce. Bullion has gained nearly 2% this week after rebounding from one-month lows recorded earlier in May.

Market attention remained focused on developments in the Middle East after U.S. and Iranian forces reportedly exchanged fire on Thursday near the Strait of Hormuz, marking the most significant breach of the month-old ceasefire agreement so far.Iran later stated that conditions in the affected coastal regions had returned to normal. U.S. President Donald Trump, meanwhile, said in an interview with ABC News that the ceasefire remained in effect despite the recent escalation.The latest developments have kept investors cautious, particularly given the strategic importance of the Strait of Hormuz, a key global energy shipping route. Concerns over potential disruptions to oil supply initially supported energy prices, although expectations surrounding a broader peace agreement helped ease crude oil from recent highs.

The moderation in oil prices also contributed to easing inflation concerns across financial markets. Lower inflation expectations can reduce pressure on central banks to maintain higher interest rates, which is generally supportive for non-yielding assets such as gold.The U.S. dollar also softened slightly during the week, providing additional support to bullion prices. The U.S. Dollar Index traded modestly lower during Asian trading hours after a volatile session earlier in the week.Investors are now closely watching the upcoming U.S. non-farm payrolls report for further clarity on the Federal Reserve’s monetary policy outlook. Markets expect payroll growth of approximately 65,000 jobs, while the unemployment rate is projected to remain steady at 4.3%.

The labor market data is expected to play a significant role in shaping expectations around future interest rate decisions by the Federal Reserve, particularly as markets continue to assess the balance between economic resilience and slowing inflationary pressures.Despite this week’s recovery, gold prices remain notably below levels seen before the escalation of the Iran conflict earlier this year. Since late February, bullion has faced pressure from elevated oil prices and shifting interest rate expectations linked to geopolitical developments.

Among other precious metals, spot silver rose 2.1% to $80.11 per ounce, while platinum gained 1.4% to trade near $2,053 per ounce. In industrial metals, benchmark copper futures on the London Metal Exchange rose 0.4% to $13,396 per ton, while U.S. copper futures advanced 1.8% to $6.29 per pound.