Gold Prices Edge Higher on Lower Oil Prices, Subdued Dollar

Gold prices inched higher on Friday as lower oil prices and a subdued US dollar provided support. Spot gold was up 0.2% at $4,346.65 per ounce.

The Federal Reserve's interest rate hike on Wednesday and its pledge for more hikes in the coming months weighed on gold demand, despite Goldman Sachs keeping its end-2027 price forecast at $5,400.

Ahmad Assiri, research strategist at Pepperstone, noted that a weaker dollar makes greenback-priced commodities less expensive for holders of other currencies. However, he also cautioned that high-rates environment could cap near-term gold upside if rising yields stem from rate expectations rather than deteriorating fiscal confidence or war-related spending.

Meanwhile, spot silver rose 0.7% to $65.61 and was headed for a weekly gain, while platinum gained 1% to $1,785.80 and palladium added 0.2% at $1,294.41.