WASHINGTON (dpa-AFX) - Gold traded lower on Friday and headed for its first weekly decline in three amid the prospect of fewer U.S. interest rate cuts.
Spot gold dropped half a percent to $3,353.19 per ounce in European trade while U.S. gold futures were down 1.1 percent at $3,369.97.
The dollar was set to log its biggest weekly rise in over a month due to tariff, inflation and Middle East concerns.
The Fed's hawkish stance also boosted the dollar and weighed on bullion.
Earlier this week, the U.S. Federal Reserve trimmed the outlook for rate cuts in 2026 and 2027 amid the risk that inflation could stay persistently higher.
On the geopolitical front, the aerial war between Iran and Israel continues for the eighth day.
Israeli Prime Minister Benjamin Netanyahu ordered intensified strikes on Iran, targeting 'strategic' and 'government' sites in Tehran, following a reported Iranian missile strike on a hospital in Beersheba.
An Iranian missile struck a premier research institute in Israel known for its work in life sciences and physics, among other fields.
U.S. President Donald Trump said he would decide within two weeks whether to authorize a direct U.S. military strike on Iran, citing a 'substantial chance of negotiations.'
Trump was holding off on final decision to see if Tehran gives up its nuclear program, the Wall Street Journal reported, citing sources.
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