Gold edged lower on Friday and was headed for a second ​consecutive weekly drop, as elevated oil prices fuelled fears of inflation and boosted expectations of a U.S. ​interest rate ​hike this year.

Spot gold was down 0.4% at $4,524 per ounce, as of 0904 GMT. The metal has shed about 0.4% so far in the ⁠week.

U.S. gold futures for June delivery lost 0.4% to $4,524.20. Brent crude oil prices held above $105 a barrel as investors doubted the prospects of a breakthrough in U.S.-Iran peace talks, even as Iranian media reported that Iran's foreign minister met Pakistan's interior minister on ​Friday to ‌discuss proposals to end ⁠the war.

"Given the ⁠current high negative correlation to oil, dollar, and yields, these – especially oil - will set the ​tone for gold in the upcoming sessions," said Ole Hansen, ‌head of commodity strategy at Saxo Bank. Higher oil prices ⁠stoke inflation risks, increasing chances of higher-for-longer interest rates. While gold is traditionally seen as a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal.

Markets are now pricing in a Federal Reserve rate hike before year-end, with a 41% chance of a 25 basis-point hike in December, according to CME Group's FedWatch tool.

The dollar held near a six-week high, making greenback-priced bullion more expensive for holders of other currencies.

"Technically, the 200-day moving average at $4,372 and the 50-day at $4,667 ‌continue to define the outer boundaries, with gold likely retaining a ⁠slight negative bias until the Middle East crisis is ​resolved," Hansen said. Elsewhere, U.S. President Donald Trump will swear in Kevin Warsh as Fed chair later in the day at the White House, the administration said.

Spot silver fell 1.1% ​to $75.86 per ounce, ‌platinum lost 1.5% to $1,935.90 and palladium fell 1.1% to $1,363.21. All ⁠the metals were on course for ​weekly losses.