Gold ?prices fell on Friday ?and were on course ?for their first weekly decline after a four-week winning streak, as a U.S.-Iran deadlock kept oil prices elevated and inflation concerns in focus.
Figures released this morning show spot gold was down 0.2% at $4,683.23 per ?ounce, having hit its lowest point ?since April 13. It is down almost 3% so far this week. U.S. gold futures for June delivery fell 0.5% to $4,699.
Brent crude prices have popped about ?18% so far this week and held above $105 a barrel, on concerns of a renewed ?military escalation in the Middle East and a lack ?of progress in re-opening the key waterway.
Higher crude oil prices can stoke inflation, increasing the likelihood that interest rates stay higher for longer.
While gold is often seen as an inflation hedge, ?elevated rates make yield-bearing assets more attractive, weighing on demand for non-yielding bullion.
U.S. ?President Donald Trump said he was in no rush to ?reach a peace agreement with Iran and wanted it to be "everlasting," while continuing to assert that the U.S. had a clear upper hand in ?the naval stand-off in the strait.
Meanwhile, ?the dollar was on track for its first weekly gain in three weeks, while the benchmark 10-year U.S. Treasury yields gained 2% this week.
On the physical demand side, gold premiums in India climbed to their highest in over two-and-a-half months this week, as supplies tightened, while ?buying interest picked up in China.
