Gold Prices Rise as Weaker Dollar and Iran Ceasefire Hopes Boost Safe-Haven Demand

Gold prices climbed on Friday and were set for a strong weekly gain as the U.S. dollar weakened following the latest U.S. jobs report. Investors also turned to safe-haven assets amid ongoing tensions in the Middle East and uncertainty surrounding the Strait of Hormuz.

Spot gold increased 0.7% to $4,717.91 per ounce, while gold futures gained 0.4% to $4,727.11 per ounce. The precious metal has now risen more than 2% this week after recovering from one-month lows recorded earlier in May.

Market sentiment improved after U.S. President Donald Trump stated that the ceasefire between the United States and Iran remained active despite recent military clashes near the Strait of Hormuz. The strategically important waterway, which handles nearly 20% of global oil and gas shipments, has faced severe disruptions since tensions escalated earlier this year.

The U.S. military confirmed that it disabled several Iranian-flagged oil tankers attempting to enter Iranian ports in the Gulf of Oman. Reports also indicated that American forces responded to attacks on U.S. warships in the region with strikes near Iran’s Bandar Abbas and Qeshm port areas.

Meanwhile, investors closely monitored the latest U.S. labor market data. The Bureau of Labor Statistics reported that nonfarm payrolls rose by 115,000 in April, surpassing expectations of 65,000. The unemployment rate remained unchanged at 4.3%.

Despite the stronger-than-expected jobs report, traders reduced expectations for additional Federal Reserve interest rate hikes this year. The softer outlook for rates pressured the U.S. dollar lower, making gold more attractive to international buyers.

Other precious metals also moved higher, with silver surging 2.5% to $80.41 per ounce and platinum rising 0.2% to $2,065.70 per ounce.