Gold prices rose on Friday, supported by a weaker dollar and ?softer U.S. Treasury yields, but ?were on track ?for a second consecutive weekly drop as rising energy prices dimmed prospects for near-term U.S. interest rate cuts.
Spot gold was up 0.8% at $5,118.75 per ounce, as of 0234 GMT. ?U.S. ?gold futures for April delivery was unchanged at $5,123.30.
Bullion has lost roughly ?1% so far this week.
Fears of inflation and questions about the Federal Reserve’s ability to cut rates if high oil prices persist ?is somewhat counteracting gold’s appeal, Waterer said.
The dollar nudged lower on Friday, making greenback-priced commodities such as bullion cheaper for holders of other currencies.
Heightening geopolitical tensions, ?Iran’s Supreme Leader Mojtaba Khamenei said on Thursday that Tehran will keep the strategic Strait of ?Hormuz closed as leverage against the United States and Israel, ?a development that has stoked concerns about global energy supply and risk assets.
Oil prices rose above $100 a barrel, stoking inflation fears, as attacks on oil tankers in the Gulf ?and warnings from Iran shattered prospects of quick de-escalation in the Middle East conflict.
As ?oil prices surged, U.S. President Donald Trump again demanded Fed Chair ?Jerome Powell cut interest rates.
Traders expect the Fed to keep rates steady in the current 3.5%-3.75% range at the end of ?its two-day meeting on March 18.
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