Gold prices climbed above $4,700 per troy ounce on Friday, heading for a weekly gain as central bank demand and Middle East uncertainty kept buyers in the market.
Spot gold rose 0.8% to $4,723.52 per ounce in early trading. U.S. gold futures gained 0.5% to $4,731.96. The metal is up nearly 2% for the week, recovering from one-month lows hit earlier in May.
Analysts at Saxo Bank said gold’s strength during a period of rising equities points to ongoing central bank purchases. They also cited investor concerns about inflation, economic growth, and government debt levels.
From a technical standpoint, analysts at XS.com said gold holds a positive structure as long as it stays above $4,680 per ounce. That level now acts as immediate support.
The recent upside breakout triggered fresh algorithmic buying and institutional inflows, according to XS.com’s Simon-Peter Massabni. He said there is a growing chance gold attempts to reach the $4,800 level if momentum holds.
U.S. and Iranian forces exchanged fire near the Strait of Hormuz on Thursday in the most serious breach of the month-old ceasefire so far. Iran later said conditions in coastal areas had returned to normal.
"Three World Class American Destroyers just transited, very successfully, out of the Strait of Hormuz, under fire. There was no damage done to the three Destroyers, but great damage done to the Iranian attackers… just like we knocked them out again today, we’ll knock them… pic.twitter.com/e0sTYzKjTE
— The White House (@WhiteHouse) May 7, 2026
President Trump told ABC News the ceasefire was still in effect. The two sides are working with mediators on a memorandum of understanding to restart peace negotiations.
Gold fell more than 10% after the Iran conflict started in late February. Rising oil prices at that time increased inflation fears and lifted interest rate expectations, which weighed on bullion.
This week, the possibility of a broader peace deal helped cool oil prices. Lower oil prices ease inflation concerns, which in turn reduces pressure on the Federal Reserve to keep interest rates high.
A slight pullback in the U.S. dollar mid-week also gave gold a boost. The U.S. Dollar Index was flat to slightly lower in Asian trading on Friday.
Traders were holding back from large positions ahead of the U.S. non-farm payrolls report due later Friday. Analysts forecast job growth of around 65,000, with the unemployment rate expected to hold at 4.3%.
A weaker jobs number could strengthen the case for future Fed rate cuts. Lower rates tend to support gold, which pays no yield.
Other metals also gained on Friday. Spot silver rose 1.9% to $79.95 per ounce. Platinum climbed 1.7% to $2,060.30 per ounce. Copper futures on the London Metal Exchange edged up 0.4%.
The next key level traders are watching for gold is $4,800 per ounce.
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