Gold prices experienced a slight decline on Friday, influenced by a stronger US dollar and rising oil prices, which have increased expectations for potential interest rate hikes by the US Federal Reserve.
As of 0411 GMT, spot gold was down 0.3% at $4,527.60 per ounce, marking a 0.2% decrease for the week. Meanwhile, US gold futures for June delivery also fell by 0.3% to $4,529.10.
The dollar remained near a six-week high, rendering gold, priced in the US currency, more expensive for buyers using other currencies. Edward Meir, an analyst at Marex, noted, “What’s been driving (gold) lower has been the stronger dollar, which in turn is being elevated by ongoing high interest rates pretty much around the world.”
In related developments, US Secretary of State Marco Rubio reported “some good signs” in ongoing talks with Iran, although issues such as Tehran’s uranium stockpile and control over the Strait of Hormuz remain contentious points.
Oil prices increased as investors grew skeptical about prospects for a breakthrough in US-Iran peace negotiations. Rising oil prices contribute to inflation risks, which may lead to sustained higher interest rates.
Gold is typically viewed as a safeguard against inflation; however, increasing interest rates generally exert downward pressure on the non-yielding asset. The markets are anticipating a Fed rate hike by year-end, with a 60% probability of a move occurring by December, based on analysis from CME Group’s FedWatch tool.
On Friday, US President Donald Trump is scheduled to swear in Kevin Warsh as the new Fed chair, according to announcements from the Trump administration. Richmond Fed President Thomas Barkin emphasized on Thursday that the response of businesses and consumers to ongoing economic disruptions will crucially influence whether the Fed can “look through” current high inflation or if it needs to consider raising interest rates.
Spot silver fell 0.2% to $76.53 per ounce, yet remains on track for a weekly increase of 0.8%. Platinum prices dropped 0.5% to $1,955.66, while palladium declined by 0.2% to $1,375.35; both metals are anticipated to record weekly losses.
Published on May 22, 2026.
