Gold prices moved slightly higher during trading on Friday as investors continued watching developments in talks between the United States and Iran, along with growing concerns about rising inflation in the US and the possibility that interest rates could stay high for a longer time.
By 01:13 GMT, spot gold was up 0.4% at $4,512.79 per ounce. The metal also posted small weekly gains of around 0.1%.
Gold had dropped to its lowest level in two months on Thursday before bouncing back and ending the session higher. The recovery came after reports suggested the ceasefire between the United States and Iran had been extended.
Economic data also showed that inflation in the United States increased in April at its fastest pace in three years. Rising energy prices linked to the war with Iran were seen as a major reason behind the increase.
The latest inflation figures strengthened expectations among economists that the US Federal Reserve may keep interest rates unchanged until next year.
Other precious metals also recorded gains. Silver rose 0.7% to $76.17 per ounce, platinum added 0.2% to reach $1,926.18, while palladium climbed 0.9% to $1,380.94 per ounce.
