(RTTNews) - Gold ticked higher on Friday but was on track for its second weekly loss, driven by pressure from a stronger dollar and shifting Fed rate cut expectations.
Spot gold edged up by 0.2 percent to $5,087.75 an ounce as the dollar and oil paused their advance. U.S. gold futures, however, were down 0.6 percent at $5,094.54.
Bullion remains on track for a second weekly decline in the wake of inflation concerns and dollar strength linked to the ongoing conflict involving Iran, Israel and the United States.
Oil prices remain elevated, with Brent prices holding above $100 a barrel as concerns over supply disruptions overshadowed news of a record release of emergency reserves by members of the International Energy Agency.
The war in the Middle East is creating the biggest oil supply disruption in history, the agency said in its latest monthly oil market report.
In economic news, the PCE price index data for January, the Fed's preferred inflation gauge, along with other reports on durable goods orders and consumer sentiment, will be closely watched later today for cues on interest rate movements.
Citing economic pressures, President Donald Trump has urged the Federal Reserve to cut interest rates immediately rather than waiting until the next policy meeting.
However, analysts said such a move from the Federal Reserve is unlikely.
According to the CME FedWatch Tool, there is a 98.3 percent chance the Fed will leave rates unchanged during next week's meeting and delay a rate cut until at least September.
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