Gold edged lower on Friday, pressured
by a stronger US dollar and as elevated oil prices have raised
expectations for interest rate hikes by the US Federal
Reserve.
Spot gold was down 0.3% at $4,527.60 per ounce, as of
0411 GMT. The metal has shed about 0.2% so far in the week.
US gold futures for June delivery lost 0.3% to
$4,529.10.
The dollar held near a six-week high, making
greenback-priced bullion more expensive for holders of other
currencies.
“What’s been driving (gold) lower has been the stronger
dollar, which in turn is being elevated by ongoing high interest
rates pretty much around the world,” said Edward Meir, an
analyst at Marex.
US Secretary of State Marco Rubio said there had been
“some good signs” in talks with Iran, although Tehran’s uranium
stockpile and control over the Strait of Hormuz remained
sticking points.
Oil prices climbed as investors doubted the prospects of a
breakthrough in the U.S.-Iran peace talks.
Elevated oil prices stoke inflation risks, increasing
chances of interest rates staying higher for longer.
While gold is traditionally seen as a hedge against
inflation, higher interest rates tend to weigh on the
non-yielding metal.
Markets are pricing in a Fed rate hike before year-end, with
a 60% chance of a move by December, according to CME Group’s
FedWatch tool.
US President Donald Trump will swear in Kevin Warsh as the
Fed chair on Friday at the White House, the Trump administration
said.
How businesses and consumers respond to ongoing economic
shocks will determine if the Fed can “look through” current high
inflation or needs to consider raising interest rates, Richmond
Fed President Thomas Barkin said on Thursday.
Spot silver fell 0.2% to $76.53 per ounce, but was
headed for a weekly gain of 0.8%. Platinum lost 0.5% to
$1,955.66 and palladium fell 0.2% to $1,375.35, with both
metals on course for a weekly loss.
Published on May 22, 2026
