Gold prices extended their losses on Friday after falling more than 2% in the previous session, as rising oil prices increased concerns that inflation could pick up again.
Spot gold slipped 0.4% to $4,030.09 per ounce, putting it more than $130 below the two-week high it reached on Wednesday. U.S. gold futures for August delivery also dropped 0.4% to $4,033.20 per ounce.
The decline comes as Brent crude oil climbed above $100 per barrel, raising concerns that higher energy costs could fuel inflation. As a result, investors are increasing their expectations that the U.S. Federal Reserve could raise interest rates before the end of the year.
Despite the recent pullback, gold is still on track to finish the week with a modest gain of around 0.4%.
Other precious metals also moved lower on Friday. Silver fell 0.7% to $57.29 per ounce, although it remains on track for a weekly gain of about 2.5%.
Platinum dropped 1.3% to $1,579.49 per ounce, while palladium declined 1.5% to $1,237.50 per ounce. Both metals are expected to end the week in negative territory.
Investors are now closely watching next week’s Federal Reserve meeting, which could provide important signals about the future direction of U.S. interest rates and inflation.
