BENGALURU, April 12, 2026, 13:38 IST
Gold is starting the week just about where it ended Friday, holding on to a third consecutive weekly advance. Spot gold finished Friday at $4,761.79 an ounce, unchanged in late trade, with U.S. gold futures closing at $4,787.40. Silver added 1.6%. Platinum dropped 2.3%, and palladium gave up 1.9%.
The key issue isn’t how things ended Friday, but what’s ahead. U.S.-Iran negotiations in Islamabad wrapped up Sunday with no agreement, casting fresh uncertainty over both the ceasefire and the Strait of Hormuz. Gold, as ever, drew attention as a classic safe-haven play for investors on edge.
Last week, bullion took its cue from the dollar, which was on track for its steepest weekly fall since January. As traders backed out of safe-haven bets tied to wartime concerns, gold became more affordable in other currencies. But as BNZ strategist Jason Wong pointed out, sentiment could flip fast if diplomacy falls short.
Bullion pushed back above $4,789 by Thursday, hovering close to levels last seen three weeks ago. Bob Haberkorn, senior market strategist at RJO Futures, pointed to a softer dollar as the factor letting gold “regain its footing,” but added that traders remained uncertain about the actual implications of the ceasefire. Reuters
Inflation is another factor squeezing the market. U.S. consumer prices jumped 0.9% in March—the largest monthly gain since mid-2022—driven by a sharp 21.2% leap in gasoline. That complicates any swift rate cuts by the Federal Reserve, limiting support for gold, which doesn’t pay interest and so struggles when rates stay high. “Direct inflation hit,” FWDBONDS chief economist Christopher Rupkey said of the war’s economic fallout. Reuters
Gold’s downside isn’t hard to trace here. Over the weekend, three supertankers got out of the Gulf, and Saudi Arabia reported its East-West pipeline is back running at its 7 million barrels-per-day capacity. That combination could take the edge off the oil shock—if things stay stable—and take some heat out of gold’s fear premium.
Physical demand in India picked up a bit ahead of Akshaya Tritiya on April 19, but jewellers reported footfall was still much lower than usual given current price levels. Over in China, gold premiums fell to $3-$5 an ounce from $12-$17 the previous week as retail buying slowed, though investment demand held up—if a bit more selectively—according to Bernard Sin of MKS PAMP.
The floor might still be holding. China’s central bank picked up gold for the 17th month running in March, lifting reserves to 74.38 million fine troy ounces. ING noted that steady central-bank purchases have put a brake on the downside during stretches of volatility.
