Gold prices were broadly steady during Asian trade on Friday, pausing after two straight months of declines as uncertainty surrounding the Iran war and its implications for global interest rates continued to influence markets.
Spot gold rose 0.2% to $4,632.46 an ounce by 22:13 ET (02:13 GMT). Gold futures climbed 0.3% to $4,643.54/oz.
Trading activity was subdued, with volumes muted on account of market holidays across most of Asia, leaving price moves relatively limited.
Prices had fallen roughly 1% in April, extending losses after a near 12% slump in March. Traders have cited concerns that the Iran war could stoke higher inflation, a dynamic that has pushed many market participants toward the dollar and away from gold.
A sharp rise in oil prices also weighed on the metal, as disruptions to global crude supplies linked to the Iran conflict drew particular attention. That spike in energy costs has been a focal point for markets assessing inflationary pressures.
Metal markets faced additional pressure this week from a series of hawkish signals from major central banks. The Federal Reserve saw an increasing number of policymakers sounding the alarm on energy-driven inflation, while the European Central Bank, the Bank of England and the Bank of Japan all signalled the prospect of near-term rate hikes in response to rising oil prices.
Higher interest rates tend to be negative for gold and other non-yielding assets because they raise the opportunity cost of holding such investments.
Other precious metals were mixed in Asian trade. Spot silver increased 0.9% to $74.4285/oz, while spot platinum slipped 0.2% to $1,986.60/oz.
While gold has found a degree of stability in the short term, the interplay between energy-driven inflation risks, central bank reaction functions and seasonal liquidity patterns will continue to shape price action.