Spot gold XAU= eased 0.1% to $4,042.77 per ounce by 0110 GMT, with prices down more than $120 from a two-week high hit on Wednesday. U.S. gold futures GCcv1 for August delivery were 0.1% lower at $4,045.60.
Bullion was on track for a small weekly gain of 0.6%.
The U.S. Federal Reserve is widely expected to keep rates unchanged next week, although traders are pricing in about an 81% chance of a hike in September, according to the CME FedWatch Tool.
The European Central Bank kept interest rates unchanged as expected on Thursday but held the door open to another increase in September.
Higher interest rates reduce the appeal of non-yielding gold.
Other precious metals and company updates
Thailand's central bank has proposed cash payment limits for physical gold bar trades at gold shops to improve transparency and oversight of transactions that could affect exchange rates.
Newmont NEM.N, the world's biggest gold miner, beat second-quarter profit estimates on Thursday after a rally in bullion prices outweighed the impact of lower output.
Azerbaijan's sovereign oil fund SOFAZ kept its total gold holdings unchanged at 178.1 metric tons in the second quarter.
African Rainbow Minerals ARIJ.J said its board has approved a phased 15.2 billion rand ($927.28 million) upgrade of its Bokoni platinum group metal operations as well as the resumption of nickel mining at Nkomati.
Spot silver XAG= was down 0.2% at $57.56 per ounce, platinum XPT= fell 0.5% to $1,592.97 and palladium XPD= dropped 0.8% to $1,246.72.
Oil, currencies and related market factors
U.S. President Donald Trump promised on Thursday "major military punishment" for Iran and its Houthi allies, after the Yemeni fighters struck two Saudi oil tankers in the Red Sea.
Brent crude LCOc1 surged 7% on Thursday, breaking through $100 a barrel for the first time since May in one of the steepest rises since the war has started.
The dollar rode U.S. Treasury yields higher, with benchmark 10-year yields at their highest since January 2025.
Gold edges lower as inflation concerns rise
July 24 (Reuters) - Gold edged lower on Friday after falling 2% in the last session, as Brent crude's move back above $100 a barrel stoked inflation concerns and strengthened the case for higher interest rates.
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