Gold and silver prices edged higher in Friday’s trade, as both precious metals attempted to recover a portion of their previous session’s losses, even as the escalating conflict in the Middle East continued to fuel expectations of tighter monetary policy by the US Federal Reserve.
Comex gold futures rose $23 per troy ounce to an intraday high of $4,073, while Comex silver futures also recovered, gaining around $1 per troy ounce to $58.98.
Despite Thursday’s decline, both precious metals attracted strong buying interest during the week. Gold has gained around 1.3%, while silver has advanced 4.5% so far this week. If these gains hold through Friday’s close, both metals will snap their two-week losing streak.
The conflict in the Middle East continued to intensify as the US and Iran showed no signs of de-escalation, with attacks increasingly targeting strategic infrastructure as both sides sought greater control over the Strait of Hormuz.
The conflict has also spread to the Red Sea, where Iran-backed Houthi rebels in Yemen reportedly targeted two Saudi oil tankers with drones and missiles for violating a maritime blockade imposed on Riyadh earlier this week.
Responding to the attacks, US President Donald Trump said he would soon decide whether to launch a “massive attack” on Iran.
Speaking to Axios on Thursday, Trump said the proposed strikes would be larger than anything seen in the conflict so far and added that Iran had not “received enough pain yet”.
The US has carried out strikes on Iran for the 13th consecutive day, and Trump’s latest warning has further heightened geopolitical uncertainty at a time when his renewed tariff measures are also weighing on global market sentiment. Iran, too, expanded its attacks on Gulf nations.
Fed policy outlook remains in focus
As geopolitical tensions persist, investors have raised their expectations for a US Federal Reserve rate hike, with the conflict pushing crude oil prices higher. Brent crude briefly crossed the $100-a-barrel mark in the previous session, reinforcing concerns over inflation.
The Federal Reserve is scheduled to meet next week, and markets broadly expect policymakers to leave interest rates unchanged. However, expectations for tighter monetary policy beyond July remain elevated, with traders assigning roughly a 68% probability of a rate hike at the September meeting.
Fed Chair Kevin Warsh has repeatedly emphasised that inflation remains a key concern, a view echoed by several other policymakers in recent weeks. At the same time, US annual inflation eased to 3.5% in June 2026 from a three-year high of 4.2% in May, coming in below market expectations of 3.8%.
Meanwhile, the US Dollar Index traded little changed around 101.1, with geopolitical developments continuing to dominate investor sentiment.
MCX gold and silver resume winning run
In the domestic market, the near-month MCX₹643 per 10 grams”> gold futures contract climbed ₹643 per 10 grams to an intraday high of ₹1,43,464, resuming its winning streak after a ₹2,900 crash in the previous session.
Meanwhile, MCX silver futures surged ₹3,475 per kg to an intraday high of ₹2,2,850. Both gold and silver have gained 1.63% and 2.75% for the week.
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