Prices for gold edged up on Friday but was headed for a third straight weekly drop, as data pointing at a resilient U.S. economy bolstered the likelihood of Federal Reserve keeping interest rates higher for longer and pinned the dollar near recent peaks.
Spot gold inched up 0.1% to $1,697.80 U.S. per ounce overnight Friday but was down 2.2% for the week so far.
U.S. gold futures were flat at $1,709.10.
The dollar index was slightly off a 20-year peak scaled in the previous session and was on track for a third straight weekly rise.
Major central banks the world over are expected to continue with aggressive monetary policy tightening to rein in sky-high inflation but is also fanning fears of an economic slowdown.
Even though gold is seen as a hedge against inflation and economic uncertainties, higher interest rates increase the opportunity cost of holding the bullion.
Spot silver dipped 0.1% to $17.83 U.S. per ounce, platinum edged 0.2% higher to $829.87 U.S. and palladium rose 0.3% to $2,018.63 U.S.
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