Gold set for third weekly gain as US rate outlook offsets dollar strength

Gold dipped on Friday as a firmer dollar and US-Iran ceasefire uncertainty weighed, but the metal stayed on course for a third consecutive weekly climb as investors priced in earlier and deeper US rate cuts, supporting non-yielding bullion. Spot gold was down 0.1% at $4,759.54 per ounce by 0316 GMT. The metal, however, has gained 1.8% so far this week. US gold futures for June delivery fell 0.7% to $4,782.70. The dollar index strengthened, making greenback-priced bullion more expensive for holders of other currencies. Spot gold has fallen about 10% since the US-Israel conflict with Iran erupted on February 28, with elevated energy prices fuelling inflation concerns and the prospect of higher interest rates. The fragile two-week ceasefire between the US and Iran showed further strain on Friday, as Washington accused Tehran of breaching promises on the Strait of Hormuz.