Gold Heads for Second Straight Weekly Decline Amid Diminished Rate Cut Bets and Strengthening US Dollar and Yields

Gold Prices Edge Higher Amid Oil Price Surge and Rising Dollar

Market Overview Gold prices rose 0.2% to $5,087.61 per ounce on Friday, but the metal is set for a 1.7% weekly loss. U.S. gold futures for April delivery fell 0.16% to $5,092.60.

Market Impact The surge in oil prices to above $100 has increased expectations for further inflationary pressures, reducing bets on rate cuts. The U.S.-Israeli war on Iran continues to stoke global energy supply and risk asset concerns. Asian equities are heading for a second straight weekly loss.

Oil Prices Oil prices are heading for weekly gains, despite efforts to ease supply concerns. The U.S. has issued a 30-day license for countries to buy Russian oil, and the IEA has agreed to release a record 400 million barrels from strategic stockpiles, including a 172-million-barrel U.S. contribution.

Read also: Gold and Silver Prices Decline Amid Strengthening Dollar and Inflation Concerns

Interest Rates and Inflation The Federal Reserve is expected to keep rates steady at its two-day meeting next week, according to the CME Group's FedWatch tool. Investors await the release of delayed January Personal Consumption Expenditures figures, which may indicate the impact of the crude price spike on inflation.

Currency and Bond Markets The dollar rose to a three-month high, while 10-year U.S. Treasury yields reached a near six-week high. The dollar is being seen as a safe haven, which is contributing to gold weakness.

Precious Metals Spot silver fell 1.3% to $82.66 per ounce. Platinum lost 2.3% to $2,081.25, and palladium shed 0.7% to $1,605.90.