Gold prices edged lower on Friday, weighed down by rising oil prices and uncertainty over Iran peace talks and interest rates.
Spot gold fell 0.3% to $4,532.11 an ounce, while futures dropped 0.6% to $4,532.05.
Oil prices remain above pre-war levels, fueling inflation fears. Central banks, including the Fed, may consider rate hikes.
Higher rates dent the appeal of non-yielding assets like gold. Bullion has fallen sharply from around $5,400 in late February.
The U.S. dollar hit a nearly six-week high, making gold more expensive for overseas buyers.
UBS's Dominic Schnider said recent data points to softer economic activity amid rising oil prices and inflationary pressures.
Attention is on diplomatic efforts to end the Iran war. Pakistan delivered the latest U.S. message to Iran.
U.S. Secretary of State Marco Rubio said talks show 'good signs' but he is not 'overly optimistic.'
Iran's Supreme Leader reportedly banned enriched uranium exports, but the White House denied the report.
The Strait of Hormuz remains nearly closed to tanker traffic, keeping oil prices elevated and fueling inflation worries.
