(RTTNews) – Gold prices fell sharply on Friday and are on track for a third weekly loss amid expectations that central banks, including the Federal Reserve, will raise interest rates to curb inflation.
A stronger dollar due to uncertainty over the US-Iran peace deal also weighed on safe haven demand for bullion.
Spot gold fell a little more than 1 percent to $4,164.49 an ounce, on track for its third consecutive weekly decline. US gold futures were down 1.5 percent at $4,181.50.
The dollar hit a one-year high and bond yields rose after the US Federal Reserve forecast it would raise rates by at least a quarter point this year.
On the geopolitical front, optimism over the US-Iran peace deal faded due to the ongoing fighting in Lebanon.
US talks with Iranian negotiators on a deal to end the Middle East conflict have been postponed, the Swiss Foreign Ministry said.
US Vice President JD Vance has delayed a planned visit to Switzerland and Tehran has also backed out of planned talks after Israeli air strikes killed at least 16 people in southern Lebanon overnight.
Hezbollah reported intense fighting in the area, threatening a new deal between Washington and Tehran to end the war.
Vance issued a stern warning to the Israeli government against joining President Trump’s interim peace deal with Iran, saying Israeli leaders need to “wake up and understand the reality” that they are isolated internationally.
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