New Delhi, May 22 (Reuters) – Gold edged lower on Friday, pressured by a stronger ‌U.S. dollar and as elevated oil prices have raised expectations for interest rate hikes by the U.S. Federal Reserve.

Spot gold was down 0.3% at $4,527.60 per ounce, as of 0411 GMT. The metal has shed about 0.2% so far in the week.

U.S. gold futures for June delivery lost 0.3% to $4,529.10.

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

“What’s been driving (gold) lower has been the stronger dollar, which in turn is being elevated by ongoing high interest rates pretty much around the world,” said Edward Meir, an analyst at Marex.

U.S. Secretary of State Marco Rubio said there had been “some good signs” in talks with Iran, although Tehran’s uranium stockpile and control over the Strait of Hormuz remained sticking points.

Oil prices climbed as investors doubted the prospects of a breakthrough in the U.S.-Iran peace talks.

Elevated oil prices stoke inflation ‌risks, ⁠increasing chances of interest rates staying higher for longer.

While gold is traditionally seen as a hedge against inflation, higher interest rates tend to weigh on the non-yielding metal.

Markets are pricing in a Fed rate hike before year-end, with a 60% chance of a move by December, according to ⁠CME Group’s FedWatch tool. FEDWATCH

U.S. President Donald Trump will swear in Kevin Warsh as the Fed chair on Friday at the White House, the Trump administration said.

How businesses and consumers respond to ongoing economic shocks will ⁠determine if the Fed can “look through” current high inflation or needs to consider raising interest rates, Richmond Fed President Thomas Barkin said on Thursday.

Spot silver fell 0.2% to $76.53 per ounce, ⁠but was headed for a weekly gain of 0.8%. Platinum lost 0.5% to $1,955.66 and palladium fell 0.2% to $1,375.35, with both metals on course for a weekly loss.

This report is given by Reuters. The Sen Times holds no responsibility for its content.