Gold heads for weekly loss as dollar strengthens, US rate outlook weighs

Gold prices fell sharply on Friday, heading for a weekly decline as the US dollar strengthened and expectations grew that US interest rates would remain elevated for longer to combat inflation.

Spot gold slipped 0.2% to $4,270.40 per ounce by 00:35 GMT, bringing its losses to more than 2% since the start of the week.

Meanwhile, US gold futures rose 0.2% to $4,304.80 per ounce.

Gold prices are typically influenced by the strength of the dollar and US monetary policy, as higher interest rates increase the opportunity cost of holding non-yielding bullion.