Gold On Track For Third Weekly Loss On Rate Hike Concerns

(RTTNews) - Gold prices fell sharply on Friday and were 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 U.S.-Iran peace deal also dented safe-haven demand for bullion.

Spot gold fell a little over 1 percent to $4,164.49 an ounce, heading for a third consecutive weekly decline. U.S. gold futures were down 1.5 percent at $4,181.50.

The dollar held near a one-year high and bond yields edged up after the U.S. Federal Reserve projected at least one quarter-point rate hike this year.

On the geopolitical front, optimism over the U.S.-Iran peace agreement faded due to ongoing fighting in Lebanon.

The Swiss Foreign Ministry said U.S. talks with Iranian negotiators on a pact to end the Middle East conflict have been postponed.

U.S. Vice president JD Vance has delayed his planned trip to Switzerland and Tehran also held back from the planned talks after at least 16 people were killed in Israeli airstrikes across southern Lebanon overnight.

Hezbollah reported intense fighting in the area, threatening the nascent agreement between Washington and Tehran to end their war.

Vance issued a stark warning for the Israeli government to get on board with President Trump's interim peace agreement with Iran, adding Israeli leaders need to "wake up and smell the reality" that they are isolated internationally.