FX.co ★ Gold Slips on Middle East Uncertainty

Gold fell below $4,450 an ounce on Friday and was on track for a weekly loss of more than 2%, pressured by persistent uncertainty in the Middle East that kept inflation risks and interest-rate concerns in sharp focus. President Donald Trump said peace talks were nearing their final stage and is reportedly reluctant to launch a full-scale war with Iran despite recent tensions. However, Iranian Foreign Minister Abbas Araghchi said there has been no meaningful progress in the negotiations. Meanwhile, Iran-backed Hezbollah rejected a US-mediated ceasefire proposal between Israel and Lebanon, further clouding prospects for de-escalation in the region. The prolonged conflict and ongoing disruptions to energy shipments through the Strait of Hormuz have kept oil prices elevated, reinforcing worries about inflation and the potential for higher interest rates.