Gold prices saw a minor drop on Friday, setting the stage for a third straight week of declines. This trend is linked to the strengthening of the dollar and the aggressive signals from the U.S. Federal Reserve, which have put pressure on the non-yielding metal. Spot gold decreased by 0.5% to $4,189.26 per ounce, as of 0043. Gold futures in the U.S. for August delivery fell by 0.9%, settling at $4,207.80. The dollar remained near a one-year peak, making gold priced in dollars more expensive for those holding other currencies.

Oil tankers moved through the Strait of Hormuz as the United States declared the end of its blockade on Iran on Thursday, aligning with the start of an interim agreement intended to resolve the conflict. Nonetheless, major disagreements persist unresolved between the two countries. Inflationary pressures stemming from the Iran war are drawing the attention of central banks around the world. A rising trend, spearheaded by the U.S. Federal Reserve, has seen many either increase borrowing costs or indicate upcoming actions to control price inflation.

Nine of the U.S. central bank’s 19 policymakers now believe they will need to raise the policy rate this year, according to projections published on Wednesday after the Fed announced its decision to maintain the policy rate in its current 3.50%-3.75% range during Kevin Warsh’s first policy meeting as chairman. Goldman Sachs anticipates that gold prices will reach $4,900 per ounce by December, a revision from its previous estimate of $5,400, as the bank no longer expects a Fed rate cut this year.

Meanwhile, the CEO of Dubai’s commodities exchange informed that a same-day settlement gold futures contract will be launched on Monday, with the goal of addressing safe-haven demand and enhancing trading infrastructure to increase liquidity in the emirate’s bullion market. Spot silver decreased by 0.8% to $65.32 per ounce, platinum declined by 0.9% to $1,680.87, and palladium was down by 0.5% at $1,272.