Gold prices rose in the European market on Friday, resuming gains that were temporarily halted yesterday, moving once again closer to a two-week high and heading toward recording a weekly gain, driven by renewed weakness in the US dollar amid growing hopes that the Iranian war truce will hold and that peace negotiations between the United States and Iran will continue.

With rising expectations of US interest rate cuts in the coming period, investors are awaiting later today the release of the US nonfarm payrolls report for April, which the Federal Reserve relies on heavily in determining the course of monetary policy in the country.

Price Overview

Gold prices today: Gold prices rose by 1.0% to $4,746.65, from the opening level of $4,685.77, and recorded a low of $4,678.45.

At settlement on Thursday, gold prices lost 0.1%, marking their first decline in the past three days, due to correction and profit-taking operations after earlier recording a two-week high at $4,764.85 per ounce.

Aside from profit-taking sales, gold prices declined due to renewed tensions in global markets following exchanges of fire between the United States and Iran in the Strait of Hormuz.

Weekly trading

Over the course of this week’s trading, which officially ends with today’s settlement, gold prices are currently up by more than 2.5%, heading toward recording their first weekly gain in the past three weeks.

The US dollar

The dollar index fell on Friday by 0.2%, resuming losses that were temporarily halted in the previous session and moving closer again to its lowest level in three months, reflecting declining levels of the US currency against a basket of major and secondary currencies.

This decline comes amid a relative improvement in market risk sentiment, with growing hopes that the Iranian war truce will continue to hold, especially in light of the current calm between US naval forces and Iran’s Revolutionary Guard in the Strait of Hormuz.

US Central Command (CENTCOM) had announced on Thursday that three naval destroyers came under attacks involving missiles, drones, and fast boats while crossing the strait, with US forces responding through “self-defense” strikes targeting missile and drone launch sites as well as military facilities in Bandar Abbas and Qeshm Island.

President Trump described the latest US strikes as merely “a light slap,” stressing that the ceasefire agreement remains “in place and effective” despite these skirmishes.

Tehran accused Washington of violating the truce and targeting two Iranian vessels and civilian areas, while announcing that its air defenses intercepted hostile targets over Tehran and coastal regions.

Chris Weston, head of research at Pepperstone, said: “The path toward a lasting peace agreement is not easy at all.” He added: “Traders have been forced to reconsider the assumptions built during recent sessions regarding the course of the conflict and the normalization of shipping traffic through the Strait of Hormuz.”

US interest rates

According to the CME Group’s FedWatch tool: pricing for the probability of keeping US interest rates unchanged at the June meeting is currently stable at 96%, while pricing for the probability of cutting interest rates by 25 basis points stands at 4%.

US jobs

In order to reprice the above probabilities, markets are awaiting later today the monthly US jobs report, which will include important labor market data, especially the number of nonfarm payrolls added in April, alongside the unemployment rate and average hourly earnings.

At 12:30 GMT, nonfarm payrolls data will be released, with expectations pointing to the US economy adding 65,000 new jobs in April, down from 178,000 jobs added in March, while the unemployment rate is expected to remain stable at 4.3%, and average hourly earnings are expected to rise by 0.3%, compared to a previous increase of 0.2%.

Gold performance outlook

Kyle Rodda, analyst at Capital.com, said: “Statements from the Trump administration this morning that the ceasefire is still in place, and that there remains ongoing optimism about the possibility of reaching an agreement between the United States and Iran, are currently supporting the gold market.”

Rodda added: “We are simply waiting for the next major headline regarding whether the United States and Iran are moving closer to reaching an agreement. I think we may witness some price volatility over the next 24 hours as the weekend approaches.”

SPDR Fund

Gold holdings at SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, increased on Thursday by about 0.29 metric tons, bringing the total to 1,033.48 metric tons, rebounding from a total of 1,033.19 metric tons, which was the lowest level since October 15, 2025.

The euro rose in the European market on Friday against a basket of global currencies, resuming gains that were temporarily halted yesterday against the US dollar, approaching once again its highest levels in three weeks, benefiting from renewed weakness in the US currency amid hopes that the Iranian war truce will continue to hold despite escalating military tensions between the United States and Iran in the Strait of Hormuz.

With pricing for the probability of a European interest rate hike in June declining, traders are awaiting later today a speech by European Central Bank President Christine Lagarde, which may include further signals regarding inflation developments and the path of monetary policy in the eurozone.

Price Overview

The euro exchange rate today: The euro rose against the dollar by 0.2% to $1.1748, from the opening level of $1.1724, and recorded a low of $1.1721.

The euro ended Thursday’s trading down by 0.2% against the dollar, marking its first loss in the past three days, due to correction and profit-taking operations after recording its highest level in three weeks at $1.1797 in the previous session.

Aside from profit-taking sales, the euro declined due to risk aversion following exchanges of fire between the United States and Iran in the Strait of Hormuz.

The US dollar

The dollar index fell on Friday by 0.2%, resuming losses that were temporarily halted in the previous session and moving closer again to its lowest level in three months, reflecting declining levels of the US currency against a basket of major and secondary currencies.

This decline comes amid a relative improvement in market risk sentiment, with growing hopes that the Iranian war truce will continue to hold, especially in light of the current calm between US naval forces and Iran’s Revolutionary Guard in the Strait of Hormuz.

US Central Command (CENTCOM) had announced on Thursday that three naval destroyers came under attacks involving missiles, drones, and fast boats while crossing the strait, with US forces responding through “self-defense” strikes targeting missile and drone launch sites as well as military facilities in Bandar Abbas and Qeshm Island.

President Trump described the latest US strikes as merely “a light slap,” stressing that the ceasefire agreement remains “in place and effective” despite these skirmishes.

Tehran accused Washington of violating the truce and targeting two Iranian vessels and civilian areas, while announcing that its air defenses intercepted hostile targets over Tehran and coastal regions.

Chris Weston, head of research at Pepperstone, said: “The path toward a lasting peace agreement is not easy at all.” He added: “Traders have been forced to reconsider the assumptions built during recent sessions regarding the course of the conflict and the normalization of shipping traffic through the Strait of Hormuz.”

Later today, the US jobs report for April will be released, which the Federal Reserve relies on heavily in determining the appropriate monetary policy tools in response to economic developments in the United States.

European interest rates

With global oil prices declining this week, money market pricing for the probability of the European Central Bank raising European interest rates by 25 basis points in June fell from 55% to 45%.

In order to reprice the above probabilities, investors are awaiting later today a speech by European Central Bank President Christine Lagarde at the Bank of Spain economic forum.

The Japanese yen declined in the Asian market on Friday against a basket of major and secondary currencies, extending its losses for the second consecutive day against the US dollar and moving further away from its highest level in three months, amid continued correction and profit-taking operations, alongside renewed buying of the US currency as a safe haven due to renewed military tensions between the United States and Iran in the Strait of Hormuz.

Government data from Japan showed that nominal wage growth slowed more than expected in March, reducing inflationary pressures on policymakers at the Bank of Japan and lowering the probability of a Japanese interest rate hike in June.

Price Overview

Japanese yen exchange rate today: The dollar rose against the yen by about 0.1% to ¥156.99, from the opening level of ¥156.87, and recorded a low of ¥156.71.

The yen ended Thursday’s trading down by 0.35% against the dollar due to correction and profit-taking operations after recording its highest level in three months at ¥155.03 in the previous session.

The US dollar

The dollar index rose on Friday by about 0.1%, extending gains for the second consecutive session and reflecting continued strength in the US currency against a basket of global currencies.

This rise comes amid renewed buying of the US dollar as the best alternative investment, following renewed hostilities between the United States and Iran in the Strait of Hormuz in a clear breach of the ceasefire agreement.

Renewed tensions in Hormuz

US Central Command (CENTCOM) announced that three naval destroyers came under attacks involving missiles, drones, and fast boats while crossing the strait, with US forces responding through “self-defense” strikes targeting missile and drone launch sites as well as military facilities in Bandar Abbas and Qeshm Island.

President Trump described the latest US strikes as merely “a light slap,” stressing that the ceasefire agreement remains “in place and effective” despite these skirmishes.

Tehran accused Washington of violating the truce and targeting two Iranian vessels and civilian areas, while announcing that its air defenses intercepted hostile targets over Tehran and coastal regions.

Chris Weston, head of research at Pepperstone, said: “The path toward a lasting peace agreement is not easy at all.” He added: “Traders have been forced to reconsider the assumptions built during recent sessions regarding the course of the conflict and the normalization of shipping traffic through the Strait of Hormuz.”

Japanese wages

Japan’s Labor Ministry said on Friday that total monthly cash earnings and a separate set of full-time wage figures rose by 2.7% year-on-year in March, below expectations of a 3.2% increase, after wages had risen by 3.4% in February.

There is no doubt that slower Japanese wage growth paves the way for further declines in prices and a slowdown in inflation during the coming period, easing inflationary pressures on policymakers at the Bank of Japan and reducing the likelihood of Japanese interest rate hikes this year.

Japanese interest rates

Following the above data, pricing for the probability of the Bank of Japan raising interest rates by a quarter percentage point at the June meeting declined from 65% to 55%.

In order to reprice those probabilities, investors are awaiting the release of more data on inflation, unemployment, and wage levels in Japan.

Gold prices rose to their highest levels in two weeks during Thursday trading, supported by a weaker dollar and falling oil prices, as hopes grew for a peace agreement between the United States and Iran, easing concerns related to inflation and higher interest rates.

Spot gold rose 1% to $4,735.32 per ounce after earlier recording its highest level since April 23. US June gold futures also climbed 1.1% to $4,745.90.

Fawad Razaqzada, market analyst at City Index, said:

“It is all tied to oil prices. When they fall, bond prices tend to rise, leading to lower yields, because investors reduce expectations for interest rate hikes by central banks, and this in turn supports assets such as gold and silver.”

US President Donald Trump had predicted a quick end to the war with Iran, while Tehran is reviewing a US peace proposal that sources said would formally end the conflict but leave some disputed issues unresolved, including Washington’s demands to halt Iran’s nuclear program and reopen the Strait of Hormuz.

Stocks rose on Thursday while oil prices declined again amid growing hopes for an agreement that could gradually reopen the strait.

Meanwhile, the dollar remained near its lowest levels in more than two months, recorded in the previous session, making gold less expensive for holders of other currencies.

Yields on benchmark 10-year US Treasury bonds also declined, reducing the opportunity cost of holding non-yielding gold.

Markets reduced their bets on a US interest rate hike by December to around 12%, compared to 16% on Wednesday, according to data from CME Group’s FedWatch tool.

Investors are now awaiting the US monthly jobs report due on Friday for signals regarding the Federal Reserve’s monetary policy path during the current year.

At the same time, China’s central bank continued increasing its gold reserves for the eighteenth consecutive month, with holdings reaching 74.64 million fine troy ounces at the end of March, compared to 74.38 million ounces in the previous month.