Spot gold was down 0.3% at $4,527.60 per ounce

Gold edged lower on Friday, amid a stronger ‌U.S. dollar and as higher oil prices have raised expectations for interest rate hikes by central banks.

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

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

The dollar held near a six-week ⁠high, making dollar-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.

There were reports of progress in Iran-U.S. talks, although Iran’s control over the Strait of Hormuz and some other issues remained sticking points.

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

Higher 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.

In the U.S., markets are pricing in a central bank rate hike before year-end, with a 60% chance of ​a move by ​December, according to ⁠CME Group’s FedWatch tool.

The U.S. president will swear in Kevin Warsh as the central bank chair on Friday.

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.