Hawkish Fed signals send gold to third straight weekly loss

June 19 (Reuters) – Gold ​prices fell on Friday, putting the yellow metal on track for a third ‌straight weekly decline, pressured by a firmer U.S. dollar and a hawkish Federal Reserve.

Spot gold was down 0.9% at $4,169.44 per ounce by 1306 GMT, after earlier hitting its lowest level since June 11 at $4,119.78. ​It has been trading below the 200-day moving average since June 5.

U.S. gold futures ​fell 1.4% to $4,186.50.

The U.S. dollar was headed for a weekly gain, making ⁠greenback-priced metals less affordable for holders of other currencies.

“Gold faces a distinct risk of ​dropping deeper into bear market territory and below the $4,000/oz mark, as the precious metal continues to ​navigate a challenging environment,” said Nikos Tzabouras, senior market analyst at Jefferies-owned Tradu.com.

“Higher-for-longer Fed expectations are toxic for non-yielding assets while benefiting the dollar,” Tzabouras added.

Nine of the U.S. central bank’s 19 policymakers now think they will need ​to raise the Fed’s policy rate this year, according to projections published on Wednesday, when ​the Fed’s board decided to leave the rate in its current 3.50%-3.75% range.

Traders currently see a 70% chance ‌of ⁠a Fed hike by September, according to the CME FedWatch Tool.

Gold’s “trajectory will depend on developments in the U.S.-Iran negotiations, next week’s U.S. inflation update and how markets price the Fed from here”, said Tzabouras.

Adding to uncertainty on whether a lasting truce can be found, Switzerland said U.S. ​talks with Iranian negotiators ​on a pact to ⁠end the Middle East conflict would not take place on Friday, as Vice President JD Vance dropped plans to travel to the European ​country.

Meanwhile, Israel and Hezbollah have agreed on a ceasefire set to begin at 1300 GMT ​on Friday, ⁠a senior U.S. official told Reuters.

Goldman Sachs cut its gold price forecast to $4,900 per ounce by December, from a previous projection of $5,400. It added that its price views remain structurally constructive but tactically ⁠cautious, ​with near-term downside risk and medium-term upside risk.

Spot silver ​fell 1.1% to $65.11 per ounce, platinum eased 1.7% to $1,667.14, and palladium lost 1.9% to $1,254.69. All three metals headed for ​weekly losses.