Gold bulls remained hesitant on Friday as mixed signals from the market kept the precious metal trading in a tight range of $4,640–$4,650 during the Asian session. Traders are reluctant to make strong moves due to an uncertain bigger picture shaped by inflation concerns, geopolitical tensions, and a stronger U.S. dollar.
On one hand, geopolitical cues supported gold. President Trump’s decision to sustain the Iranian port blockade and reports that he would be briefed on possible additional strikes on Iran suggested that tensions in the Gulf would not ease quickly. These developments made a case for gold to make further gains, keeping bulls active.
Additionally, the highest level of dissent within the Federal Reserve in more than three decades provided a boost. The Federal Open Market Committee meeting ended with an 8-4 vote to hold interest rates at the current level, indicating that the current hawkish stance might not last long and that the Fed could soon cut benchmark lending rates. This is a positive signal for non-yielding bullion.
However, the rhetoric surrounding the Gulf conflict and the likelihood of escalation boosted the U.S. dollar’s appeal as a reserve currency, causing the greenback to appreciate. These gains made gold more expensive for holders of other currencies, putting pressure on the commodity’s potential upside.
U.S. economic data also added to the uncertainty. The Personal Consumption Expenditures (PCE) price index rose 0.7% month-over-month in March, and the year-over-year figure increased 3.5%, up from 2.8% in February, indicating accelerating inflation. At the same time, the U.S. economy expanded at an annualized 2% rate in Q1 of 2026, compared to 0.5% in the previous quarter, showing resilience despite the inflation concerns.
These mixed signals are making it difficult for gold traders to take definitive positions, contributing to the tight range-bound trading observed as the week ended. Market participants, including those at Collective Mining Ltd. (NYSE American: CNL) (TSX: CNL), are studying these fundamentals to gain insights into where bullion could be headed in the coming weeks.
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