Khaberni - Gold is heading for a second consecutive weekly loss despite a slight rise on Friday, as the surge in oil prices led to declining expectations of interest rate cuts and prompted investors to sell part of their investments to cover their losses, while the rising dollar and U.S. yields pressured prices.
The spot price of gold rose 0.2 percent to $5087.61 per ounce, but it is heading towards a weekly decrease of 1.7 percent.
U.S. futures for gold delivery in April fell 0.16 percent to $5092.60.
Iran has pledged to keep the strategic Strait of Hormuz closed, increasing fears about global energy supplies and risky assets. Asian stocks are heading towards a loss for the second consecutive week as the U.S.-Israeli war on Iran nears its second week, amidst drone and missile strikes across the region.
While the latest inflation data shows that price increases are under control, the impact of the war on Iran and the resulting rise in oil prices has not yet been reflected in the data.
Investors are now awaiting the release of the U.S. Personal Consumption Expenditures Index for January later today.
According to CME's FedWatch tool, traders expect the Federal Reserve (the U.S. central bank) to keep interest rates unchanged at its meeting next week.
The dollar has risen to its highest level in three months, and the yields on U.S. 10-year Treasury bonds have reached their highest in nearly six weeks.
In terms of other precious metals, the spot price of silver fell 1.3 percent to $82.66 per ounce. The price of platinum dropped 2.3 percent to $2081.25, and the price of palladium decreased by 0.7 percent to $1605.90.
