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. Despite Friday\u2019s modest gains, bullion was on track for a nearly 3% weekly loss and has declined roughly 11% so far this month, marking a sustained period of weakness over three consecutive weeks.<\/p>\n
The U.S. dollar remained steady near a 13\u2011month high and was set for a second straight weekly advance. A stronger dollar makes gold more expensive for holders of other currencies, reducing its attractiveness and contributing to the negative performance in recent weeks.<\/p>\n
The greenback\u2019s strength has been supported by rising expectations that the Federal Reserve may need to tighten monetary policy further as inflation remains elevated. Data released on Thursday showed the U.S. personal consumption expenditures (PCE) price index, the Fed\u2019s preferred inflation gauge, rose 4.1% in May from a year earlier. This was the highest reading in more than three years and the first above 4% since 2023.<\/p>\n
According to the CME FedWatch tool, markets currently see a 63% probability of a Fed rate increase by September. Higher interest rates typically reduce the appeal of non-yielding assets such as gold, as investors can obtain better returns from interest-bearing instruments.<\/p>\n
Losses in gold were partly limited as investors monitored developments in the Middle East. A cargo vessel reported an attack near the Strait of Hormuz, underscoring lingering geopolitical risks despite a preliminary U.S.-Iran peace agreement. The incident briefly revived safe-haven demand for bullion but did not reverse the overall downward trend driven by monetary and currency factors.<\/p>\n
Among other precious metals, silver prices edged up 0.1% to $57.96 per ounce but were heading for a 12% weekly drop. Platinum rose 1% to $1,618.23 per ounce, yet remained on course for its seventh straight weekly loss, highlighting continued weakness across the precious metals segment.<\/p>\n
In base metals trading, Benchmark Copper Futures on the London Metal Exchange fell 0.4% to $13,249.33 a ton, while U.S. Copper Futures slipped 0.2% to $6.06 a pound, extending the generally softer tone across industrial commodities.<\/p>\n
What are current spot and futures gold prices?<\/strong> How much has gold declined recently?<\/strong> What is driving expectations of further Fed rate hikes?<\/strong> How are other metals performing?<\/strong>
Spot gold is trading at $4,036.88 an ounce, while U.S. Gold Futures are at $4,051.30.<\/p>\n
Gold is on track for a nearly 3% weekly loss and has fallen roughly 11% this month.<\/p>\n
Expectations are being supported by elevated U.S. inflation, with the PCE price index rising 4.1% year-on-year in May, the highest in more than three years.<\/p>\n
Silver is up 0.1% at $57.96 per ounce but facing a 12% weekly drop, platinum is up 1% at $1,618.23 per ounce yet heading for a seventh straight weekly loss, and copper futures are down 0.4% on the LME and 0.2% in the U.S.<\/p>\n