Key Takeaways

• Gold finds tentative footing: Spot gold ticked up 0.3% to $4,036.88 per ounce, while gold futures added 0.1% to $4,051.30.
• Third straight weekly loss: Bullion on track for a nearly 3% weekly decline and has shed roughly 11% this month.
• Dollar near 13-month high: The greenback is heading for a second straight weekly gain, making gold more expensive for overseas buyers.
• PCE above 4%: Thursday’s data showed the Fed’s preferred inflation gauge rose 4.1% year-on-year in May — the highest in more than three years and the first above 4% since 2023.
• September hike at 63%: CME FedWatch shows markets pricing a near two-in-three chance of Fed tightening by September.
• Hormuz attack provides brief relief: A cargo vessel attack near the strait briefly revived safe-haven demand — but was insufficient to offset dollar and rate headwinds.
• Lingering geopolitical risks: Despite the preliminary U.S.-Iran peace deal, Thursday’s incident underscores that security in the region remains fragile.
• Silver heads for 12% weekly crash: Spot silver edged up just 0.1% to $57.96 — a devastating week for the metal.
• Platinum extends losing streak: Rose 1% to $1,618.23 but is on track for its seventh consecutive weekly decline.
• Copper weakens: LME copper fell 0.4% to $13,249.33 per ton; U.S. copper futures slid 0.2%.

Gold prices steadied on Friday after three consecutive weekly declines driven by a resurgent U.S. dollar and growing expectations of Federal Reserve interest-rate hikes this year.

Spot gold ticked up 0.3% to $4,036.88 an ounce by 05:18 ET (09:18 GMT), while U.S. gold futures added 0.1% to $4,051.30.

Bullion was on track for a nearly 3% weekly loss and has declined roughly 11% this month.

Dollar and Rate Hike Fears Dominate

The U.S. dollar remained steady near a 13-month high and was headed for a second straight weekly gain — making gold more expensive for holders of other currencies.

The greenback has been supported by rising expectations that the Fed may need to tighten policy further as inflation remains elevated.

Data released on Thursday showed the U.S. personal consumption expenditures (PCE) price index — the Fed’s preferred inflation gauge — rose 4.1% in May from a year earlier. That marked the highest reading in more than three years and the first above 4% since 2023.

Markets currently see a 63% chance of a Fed rate increase by September, according to the CME FedWatch tool.

Higher interest rates typically reduce the appeal of bullion because it offers no yield.

Hormuz Attack Offers Brief Safe-Haven Reprieve

Limiting losses, investors continued to monitor developments in the Middle East after a cargo vessel reported an attack near the Strait of Hormuz — highlighting lingering geopolitical risks despite the preliminary U.S.-Iran peace agreement.

The incident briefly revived safe-haven demand for gold but was insufficient to offset pressure from the stronger dollar and higher rate expectations.

Among other precious metals, silver prices edged up 0.1% to $57.96 per ounce — heading for a devastating 12% weekly drop.

Platinum rose 1% to $1,618.23 per ounce but was on track for its seventh straight weekly loss.

Benchmark copper futures on the London Metal Exchange fell 0.4% to $13,249.33 a ton, while U.S. copper futures also slid 0.2% to $6.06 a pound.