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Gold fell to a more than one-week low on Friday and was set for a weekly decline as higher energy prices fuelled inflation fears and prolonged higher interest rates, while investors focused on the meeting between U.S. President Donald Trump and Chinese President Xi Jinping.
Spot gold extended losses for the fourth straight session and was down 0.8% at $4,613.19 per ounce by 0205 GMT, its lowest level since May 6. Bullion was down 2.1% so far this week.
U.S. gold futures for June delivery lost 1.4% to $4,619.
The dollar has gained over 1% so far this week, making greenback-priced bullion expensive for holders of other currencies.
"Gold is getting hit from all sides - rising oil has brought inflation back to the forefront, pushing yields higher and the dollar stronger, leaving the yellow metal as the unfortunate victim of the market's renewed rate-cut scepticism," said Tim Waterer, chief market analyst at KCM Trade.
Benchmark 10-year U.S. Treasury yields rose to a near one-year high, increasing the opportunity cost of holding gold.
Brent crude oil prices were up 5.5% this week, hovering above $106 a barrel, as the Iran war drags on, keeping the key Strait of Hormuz largely shut.
Gold has fallen about 13% since the U.S.-Iran conflict began in late February, amid elevated energy prices that have sparked inflation concerns and the prospect of higher U.S. interest rates. A series of inflation reports this week showed the risk that rising energy costs could metastasize to other goods and services, dimming hopes for near-term U.S. rate cuts.
While gold is seen as a hedge against inflation, high rates tend to weigh on the non-yielding asset. On the geopolitical front, Trump and Xi Jinping are set to meet later in the day to wrap up a two-day state visit that has featured pomp and business deals but also a warning from Xi that mishandling the Taiwan issue could send relations spiraling.
Spot silver fell 3.1% to $80.93 per ounce, platinum lost 1.7% to $2,021.75, and palladium was down 0.9% at $1,423.75.
(Reporting by Noel John in Bengaluru; Editing by Rashmi Aich)





















