Gold set for weekly drop as dollar strengthens and Fed rate outlook tightens

On Friday, gold prices eased, setting the stage for a weekly loss after a series of gains earlier in the month. Spot gold slipped, and U.S. gold futures inched up to roughly $4,305 per ounce. The dollar advanced, increasing the price of gold for holders of non-dollar currencies.

Federal Reserve policymakers signaled that additional rate increases may be needed to bring inflation back to target, a stance that typically reduces demand for non-yielding assets like gold. Meanwhile, U.S. jobless claims stayed near historic lows, suggesting a resilient labor market. The broader market also saw silver dip, platinum hold steady, and palladium fall.