Gold prices moved lower on Friday and are on track for a third straight week of losses as a stronger U.S. dollar and expectations of tighter Federal Reserve policy continue to weigh on the precious metal.
Spot gold fell 0.5% to $4,189.26 per ounce, while August gold futures dropped 0.9% to $4,207.80. The decline comes as the U.S. dollar remains close to its highest level in a year, making gold more expensive for buyers using other currencies.
Gold also faced pressure as investors became more comfortable taking risks. Market sentiment improved after shipping resumed through the Strait of Hormuz and the United States lifted restrictions on Iranian ports following a temporary peace agreement with Iran.
With geopolitical tensions easing, investors have shifted their focus back to inflation concerns. The economic impact of the recent conflict has pushed prices higher in many areas, leading several central banks, especially the Federal Reserve, to consider tighter monetary policies to keep inflation under control.
Because gold does not pay interest, it often becomes less attractive when interest rates are expected to rise.
Other precious metals also ended the week lower. Silver slipped 0.8% to $65.32 per ounce, platinum fell 0.9% to $1,680.87, and palladium declined 0.5% to $1,272 per ounce.
For now, traders are watching inflation data, Federal Reserve signals, and global developments closely to see where gold prices head next.
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