Capitals, May 22 (SANA) Gold prices moved lower on Friday, putting the precious metal on track for a second straight weekly loss as investors monitored inflation pressures and expectations that U.S. interest rates may remain elevated for longer.
According to Reuters, spot gold fell 0.2 percent to $4,534.29 an ounce, while U.S. gold futures for June delivery declined 0.1 percent to $4,535.60 an ounce.
Other precious metals also weakened. Spot silver slipped 0.5 percent to $76.32 an ounce, platinum eased 0.3 percent to $1,959.20, while palladium held relatively steady at $1,377.89 an ounce.
Market analysts linked the decline in gold to recent U.S. labour market data showing lower unemployment benefit claims, a sign of continued economic resilience that could allow the Federal Reserve to maintain a restrictive monetary policy stance aimed at controlling inflation.
Higher interest rates generally reduce the appeal of gold because the metal does not provide yield, making interest-bearing assets more attractive to investors.
Meanwhile, oil prices fell by around two percent as traders assessed uncertainty surrounding prospects for easing tensions linked to the ongoing U.S.-Israeli-Iranian conflict and its impact on global energy markets.
Reuters reported that Brent crude futures dropped $2.44, or 2.3 percent, to settle at $102.58 a barrel, while U.S. West Texas Intermediate crude declined $1.90, or 1.9 percent, to close at $96.35 a barrel.
Both benchmark contracts ended the session at their lowest settlement levels in nearly two weeks after reversing earlier gains recorded during the trading day.
Global energy markets continue to face heightened volatility amid concerns over shipping disruptions and the security of energy supplies in strategic maritime routes.
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