Spot Gold was poised to record a weekly loss, as a stronger US Dollar and the prospect of fewer interest rate cuts by the Federal Reserve weighed on the metal.
The greenback looked set to register its biggest weekly advance in more than one month. The US Dollar Index was last down 0.14% to 98.642, but up 0.51% so far this week.
A firmer dollar makes dollar-priced Gold less appealing to international investors holding other currencies.
The Fed kept its federal funds rate target range without change at 4.25%-4.50% at its June meeting and flagged two potential 25 bps interest rate cuts by the end of 2025.
The US central bank highlighted that uncertainty over the economic outlook had diminished, but was still elevated.
“Macroeconomic developments, particularly steady yields and renewed USD strength, have not supported the (gold) price,” ANZ analysts wrote in an investor note, cited by Reuters.
“Rising inflation expectations and the Fed’s cautious stance have weighed on market expectations around the number of rate cuts this year.”
In the meantime, US President Trump is to decide within the upcoming two weeks if the US will take part in the Israel-Iran air war, mounting pressure on Tehran to begin negotiations.
Spot Gold was last down 0.49% on the day to trade at $3,353.80 per troy ounce.
The commodity has extended a pullback from a 7-week high of $3,451.52 per troy ounce.
The precious metal has lost 2.36% so far this week.
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