Singapore, May 22 (QNA) – Gold prices edged lower on Friday and were headed for a second straight weekly decline, pressured by a firmer US dollar and higher oil prices, which strengthened expectations that the US Federal Reserve will keep interest rates elevated for longer.
Spot gold slipped marginally to $4,522.89 per ounce and was on track for a weekly loss of about 0.3%.
US gold futures for June delivery fell 0.4% to $4,524.40 per ounce.
Among other precious metals, spot silver declined 0.2% to $75.20 per ounce, while platinum eased 0.17% to $1,933.25 and palladium fell 0.15% to $1,369.25. Both metals were also set for weekly losses.
The US dollar hovered near a six-week high, making gold more expensive for holders of other currencies and weighing on demand for the precious metal.
Oil prices meanwhile advanced amid investor skepticism over the prospects for a breakthrough in peace talks concerning the war in Iran, fueling concerns that inflationary pressures may persist and keep interest rates higher for an extended period.
Gold is traditionally considered a hedge against inflation, but higher interest rates tend to diminish the appeal of the non-yielding asset. (QNA)