Gold prices extended losses in Asian trading on Friday, positioning the metal for a third consecutive weekly decline. Spot gold fell 1.8% to $4,134.86 per ounce by 02:40:12 ET (06:40 GMT), while U.S. Gold Futures for August slipped 2.2% to $4,152.25, translating to an anticipated 2% weekly drop after a brief rally on optimism from a U.S.-Iran interim peace agreement.
The Federal Reserve left its policy rate unchanged at its June meeting, but comments from Chair Kevin Warsh were interpreted as decidedly hawkish, reinforcing expectations that borrowing costs could stay elevated. Nine of the Fed’s 19 policymakers signaled they expect at least one rate increase later this year, and futures markets now price in more than an 80% probability of a year‑end rate hike. The hawkish stance lifted the U.S. dollar to its strongest level in more than a year; the U.S. Dollar Index, after surging 0.8% on Thursday to a peak not seen since May 2025, was largely unchanged during Asian hours. A stronger greenback makes dollar‑denominated bullion more expensive for overseas buyers, while higher rates raise the opportunity cost of holding non‑yielding assets such as gold.
Gold’s weakness was compounded by geopolitical developments. Switzerland announced that talks on a final accord to end the Middle East conflict would not take place on Friday, and U.S. Vice President J.D. Vance reportedly suspended planned Geneva talks, casting doubt on the durability of the recently announced interim agreement. The agreement had been expected to facilitate the reopening of shipping through the Strait of Hormuz and had earlier triggered a steep decline in oil prices; however, oil prices rebounded on Friday, reviving some inflation concerns.
Among other precious metals, silver fell 2.5% to $64.09 per ounce, platinum slipped 1.4% to $1,674.51 per ounce, and copper also weakened. Benchmark Copper Futures on the London Metal Exchange slid 0.9% to $13,582.33 a ton, while U.S. Copper Futures fell 1% to $6.30 a pound.