Gold reclaims $4,000, weekly decline follows U.S.-Iran rate-hike bets

Gold futures rose Friday. The University of Michigan consumer sentiment index improved, and shorter-term inflation expectations eased. The metal climbed back above $4,000 an ounce for the first time since last week.

The weekly picture was different. Gold fell 1.2% for the week, weighed by expectations that the Federal Reserve will keep rates elevated. The move followed a flare-up in tensions between the U.S. and Iran, which drove oil prices higher and rekindled inflation concerns. Traders said the Fed's next move is now less certain, with some pricing in a rate hike by year-end.

The dollar strengthened on the view, adding pressure on gold. The metal settled at $3,985.20 on Friday, according to exchange data. For a detailed breakdown of gold's price drivers, see the gold profile.