(RTTNews) - Gold prices traded lower on Friday as U.S.-Iran peace talks showed little progress and the Strait of Hormuz remained effectively closed, sending oil prices soaring to $107 a barrel.
Spot gold slipped 0.2 percent to $4,685.70 an ounce and was down about 3 percent for the week. U.S. gold futures were down 0.3 percent at $4,683.02.
Tensions rose after Iran flaunted its tightened grip over the key Strait of Hormuz and U.S. President Donald Trump said he has ordered the Navy to "shoot and kill any boat" that is putting mines in the waters of the Strait of Hormuz.
Trump said the United States is not rushing to resolve the conflict with Iran, describing Iran's leadership as being in turmoil.
Media reports suggested that Iranian Parliament Speaker Mohammad Bagher Ghalibaf has resigned from U.S. negotiations, signaling a shift toward hardline unity.
Brent crude futures climbed toward $107 a barrel, extending gains for a fifth consecutive session, marking the longest rally since January on heightened fears of prolonged supply disruptions in the Persian Gulf.
The dollar was set for its first weekly rise in three weeks ahead of a slew of central bank meetings due next week.
A host of central banks, including the U.S. Federal Reserve, the European Central Bank, the Bank of England and the Bank of Japan are due to announce their policy decisions next week, with investors waiting for clues on whether policymakers will push ahead with rate hikes over the coming months.
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