XAU/USD rises 0.75% as traders price in lower oil prices and inflation relief from potential Middle East peace efforts.
Gold prices climbed 0.75% to $4,711 on Friday, recovering from daily lows of $4,673, as optimism over Middle East conflict resolution weighed on the US Dollar. The XAU/USD pair gained support from falling Treasury yields, with the 10-year note down two basis points to 4.362%.
The US Dollar Index (DXY) fell 0.33% to 97.93, pressured by a 6% weekly decline in WTI crude oil prices. Traders largely ignored stronger-than-expected US jobs data, which showed April Nonfarm Payrolls rising 115K, above the 62K estimate, while March figures were revised up to 185K from 178K.
Market focus remains on geopolitical developments, with Iran yet to respond to a US proposal aimed at easing tensions. Despite recent exchanges of fire in the Persian Gulf, hopes for a diplomatic breakthrough continue to drive risk sentiment.