Gold Climbs Fourth Straight Week; Soft PPI and Weak Dollar Outshine Ceasefire

Happy Friday, traders. Gold locked in its fourth straight weekly gain despite a late-week geopolitical pivot that could have taken the wind out of the rally. The yellow metal closed near $4,850, up about 0.8% on the week, after pushing to a new post-March intraweek high of $4,878 on Thursday. Silver did the heavier lifting with a roughly 4% weekly advance, closing near $79, while the US Dollar Index slipped for a third straight week.

1. Gold extended its rally to a fourth straight weekly gain, closing near $4,850, with Thursday’s $4,878 intraweek high marking the strongest level since March.

2. Silver outperformed with a roughly 4% weekly advance, reflecting renewed rotation into higher-beta precious metals as the dollar weakened for a third consecutive week.

3. A softer-than-expected March PPI print (+0.5% vs +1.1% consensus; core +0.1% vs +0.5%) supported bullion, but Fed commentary ran more patient than dovish ahead of the April 28-29 FOMC meeting.

4. Israel and Lebanon began a 10-day ceasefire Thursday evening and Iran declared the Strait of Hormuz “completely open” for commercial shipping, trimming some of gold’s safe-haven premium.

Gold opened the week around $4,735 and pushed steadily higher into Thursday, tagging a fresh post-March high of $4,878 before easing into the close. Silver, a frequent beneficiary of dollar weakness, moved from the mid-$70s at the open into the high-$70s by the end of the week.

A brief reversal mid-week — when US-Iran talks in Pakistan reportedly collapsed — saw silver trade sharply lower before stabilizing. Gold held its ground throughout.

The backdrop did the rest of the work. The 10-year Treasury yield drifted to around 4.29%, and the dollar slipped on Friday to cap a third straight weekly decline. When the dollar, yields, and real rates move in gold’s favor together, the metal tends to find a bid even against competing headlines.

Tuesday’s March PPI report was the week’s standout macro data point. Headline producer prices rose 0.5% against a 1.1% consensus, and core came in at 0.1% against 0.5% expected. That was a meaningful miss on the cooling side, and it landed at a moment when the market was already leaning into the idea that inflation momentum from earlier in the year had peaked.

Fed commentary ran cooler than the price action might suggest. Chicago Fed President Austan Goolsbee said the longer the Middle East conflict drags on, the more a rate cut gets pushed off. Governor Michael Barr told reporters the Fed may need to keep rates steady “for some time” before further cuts are warranted. The underlying message was patience, not urgency, and Fed funds futures repricing was modest.

Jobless claims came in at 219,000, up from 203,000 the week prior — not alarming on its own, but a small nudge toward the cooling labor-market narrative the Fed has been watching.

Thursday brought the week’s most consequential geopolitical story. A 10-day ceasefire between Israel and Lebanon took effect at 5:00 pm, and Iran declared the Strait of Hormuz “completely open” to commercial shipping during the ceasefire window. Oil dropped, equities rallied, and some of gold’s safe-haven premium bled out.

Two caveats tempered that narrative. President Trump said the US blockade of Iranian ports “will remain in full force” until a durable peace deal is reached, and the mid-week collapse of US-Iran talks in Pakistan was a reminder that diplomatic progress can reverse in a day. Gold’s inability to give back more than a modest amount of the week’s gains says the market isn’t ready to price a clean risk-off unwind.

Next week is a quieter macro week by design. The Fed enters its pre-meeting blackout over the weekend, so Fed speak will thin out. The marquee event is Tuesday’s Senate Banking Committee confirmation hearing for Fed Chair nominee Kevin Warsh at 10:00 am, which could inject some policy commentary even if it doesn’t move rate expectations directly.

Geopolitics stays firmly on the watch list. The 10-day ceasefire window expires toward month-end, and the talks-progress-collapse pattern we’ve seen will keep testing the thesis. If the ceasefire holds and the Strait remains functional, expect some further compression of gold’s geopolitical premium — though the dollar and yield picture suggest any pullback likely finds buyers.

The bigger item on the horizon is the April 28-29 FOMC meeting. No change in rates is widely expected, but the statement and Chair Powell’s press conference will be parsed for any shift in language on labor-market risks and inflation progress. Gold has headroom above $4,800 and silver remains constructive in the mid-$70s. Whether those levels hold into the meeting likely depends on whether the soft-PPI thread gets extended by next week’s data, or if hawkish Fed rhetoric wins the tug-of-war.