(RTTNews) - Gold prices fell more than 2 percent on Friday, reaching a more than one-week low and on track for a weekly decline.
Spot gold slumped 2.1 percent to $4,554.99 an ounce, extending losses for a fourth consecutive session, pressured by a stronger dollar and rising Treasury yields. U.S. gold futures were down 2.8 percent at $4,555.25.
The dollar rose alongside higher U.S. Treasury yields and was on track for its biggest weekly gain in more than two months as traders raised their bets on a Federal Reserve rate hike this year, even under the new leadership of Kevin Warsh.
Fed officials continued to emphasize inflation risks, with Kansas City Fed President Jeffrey Schmid calling inflation the most "pressing risk" to the U.S. economy.
Elsewhere, ECB Governing Council member Martins Kazaks said in an interview with broadcaster LTV on Thursday that the central bank will be forced to raise interest rates if rising oil prices start feeding into inflation expectations.
Bullion was also under pressure from elevated crude oil prices as attacks on one ship and the seizure of another around the Strait of Hormuz stoked concerns about energy supplies.
The Trump-Xi summit has so far produced warm words but yielded little progress on the war in Iran.
After a high-stakes meeting, U.S. President Donald Trump claimed that China intends to purchase U.S. oil and soybeans.
He also said that the Chinese President has assured him that Beijing would not provide military equipment to Iran.
Trump said he won't be much more patient with Iran, warning the country to make a deal or face "annihilation".
In a Telegram post, Iran's Foreign Minister Abbas Araghchi has accused the United Arab Emirates of playing an active role in the U.S.-Israeli war against his country.
In economic news, the release of U.S. NY Empire State manufacturing index for May as well as industrial and manufacturing productions data for April could be in the spotlight later today.
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