Gold prices fell slightly to continue their path to a second weekly loss, as pressure from rising dollar and oil prices continued, boosting market expectations that the Federal Reserve could raise interest rates before the end of the year, according to Reuters.
On Friday , May 22, spot gold fell 0.48% to settle at $4521 an ounce, while US futures fell 0.32% to $4528, losing about 0.3% in one week.
Dollar Puts Pressure on Gold
The dollar continued to climb to 99.23 points, close to a six-week high.
Analysts believe that the strength of the dollar is the most influential factor on the movement of gold, as the continuation of high interest rates globally boosts the demand for the US currency at the expense of other assets.
The uncertainty in the talks between Washington and Tehran has also contributed to supporting the US currency, amid disagreements over the uranium file and control of the Strait of Hormuz, despite US Secretary of State Marco Rubio's statements that there are "positive signs".
The euro fell slightly to $1.1613 , and the pound settled at $1.3431 and is on track for weekly gains.
Oil prices rise amid political uncertainty
Oil prices rose as doubts grew over the possibility of progress in peace talks between the United States and Iran, with Brent crude up 2.37% to $104.95 a barrel and West Texas Intermediate crude climbed 1.66% to $98.01, after crude fell about 2% to a two-week low on Thursday.
Analysts said continued political uncertainty in the Middle East is boosting expectations of supply disruptions through the Strait of Hormuz, with WTI crude likely to remain in the $90-$110 range over the next week.