Gold is testing the $4,700 level early Friday, holding at its weakest level in over a week and eyeing the first weekly drop in five weeks.

Silver came under selling pressure in the second half of Thursday, as risk aversion fueled US Dollar (USD) demand.

Current global circumstances should be highly favorable for Gold, which functions as a safe-haven asset when geopolitical tensions arise and also acts as a store of value when fiat currencies decline during prolonged inflationary periods. That’s a nice theory, but this isn’t happening now. 

The USD/JPY pair builds on last week’s bounce from the vicinity of mid-157.00s and prolongs its uptrend for the fourth straight day on Thursday.

The EUR/USD exchange rate has pulled back in the past two consecutive days as investors reflect on the next stages of the ongoing US-Iran war. It retreated to 1.1710, down from this month’s high of 1.1847.

Gold is challenging the $4,700 level on renewed downside in Asia on Thursday, wiping out the previous rebound.