Gold prices steadied on Friday after three consecutive weekly declines driven by a resurgent U.S. dollar and growing expectations of Federal Reserve interest-rate hikes this year.

Spot gold ticked up 0.3% to $4,036.88 an ounce by 05:18 ET (09:18 GMT), while U.S. Gold Futures added 0.1% to $4,051.30.

Bullion was on track for a nearly 3% weekly loss and has declined roughly 11% this month.

The U.S. dollar remained steady near a 13-month high and was headed for a second straight weekly gain, making gold more expensive for holders of other currencies.

The greenback has been supported by rising expectations that the Fed may need to tighten policy further as inflation remains elevated.

Data released on Thursday showed the U.S. personal consumption expenditures (PCE) price index, the Fed’s preferred inflation gauge, rose 4.1% in May from a year earlier, the highest reading in more than three years and the first above 4% since 2023.

Markets currently see a 63% chance of a Fed rate increase by September, according to the CME FedWatch tool.

Higher interest rates typically reduce the appeal of bullion because it offers no yield.

Limiting losses, investors continued to monitor developments in the Middle East after a cargo vessel reported an attack near the Strait of Hormuz, highlighting lingering geopolitical risks despite a preliminary U.S.-Iran peace agreement.

The incident briefly revived safe-haven demand for gold but was insufficient to offset pressure from the stronger dollar and higher rate expectations.

Among other precious metals, silver prices edged uo 0.1% to $57.96 per ounce, heading for a 12% weekly drop.

platinum rose 1% to $1,618.23/oz, but was on track for its seventh straight weekly loss.

Benchmark Copper Futures on the London Metal Exchange fell 0.4% to $13,249.33 a ton, while U.S.Copper Futures also slid 0.2% to $6.06 a pound.