Dollar Strength Weighs on Gold Prices Amid Fed Rate Outlook

Gold prices are poised to end the week in the red, weighed down by a stronger US dollar and expectations that the Federal Reserve will maintain high interest rates to combat inflation. Despite ticking up slightly on Friday morning, spot gold was down 2% for the week at $4,288.36 per ounce as of 0200 GMT.

The strengthening dollar has had a negative impact on gold prices, which tend to lose value when the greenback gains ground. The Fed's decision to keep interest rates elevated is also seen as a major factor in the decline, as higher borrowing costs make it more expensive for investors to hold onto precious metals.