Gold prices fell more than 1% on Friday and were headed for a similar-sized weekly loss, as ?elevated oil prices ?continued to fan inflation concerns that would discourage central banks from cutting interest rates.
Spot gold skidded 1.1% at $4,568.82 U.S. per ounce, and ?on ?track for a weekly loss of 1.2%. U.S. gold futures for June delivery fell 1.1% to $4,579.70.
Brent crude prices have touched double the levels seen at the start of 2026, raising concerns about a global economic slowdown and higher inflation as fuel prices surge. U.S. inflation ?accelerated in March as the war raised gasoline prices, reinforcing expectations that the Federal ?Reserve could keep interest rates on hold well ?into next year. The European Central Bank and the Bank of England left interest rates unchanged on Thursday, following similar decisions this week by the Fed and the ?Bank of Japan.
Gold, traditionally seen as a hedge against geopolitical uncertainty and ?inflation, can come under pressure in a high interest rate ?environment as it loses its appeal to yield-bearing assets like U.S. Treasuries.
In other metals, spot silver prices fell 0.6% ?to $73.27 U.S. per ounce, platinum was down 1.3% at $1,960.30 U.S., and palladium lost 0.6% to $1,515.37 U.S.
