Baghdad: Gold prices continued their decline on Friday, after falling 2% in the previous session, as the return of Brent crude to above $100 a barrel fueled concerns about inflation and strengthened expectations of a US interest rate hike ahead of the Federal Reserve's monetary policy meeting next week.

According to National Iraqi News Agency, by Friday morning, spot gold had fallen 0.4% to $4,030.09 an ounce, down more than $130 from its two-week high reached on Wednesday. US gold futures for August delivery also fell 0.4% to $4,033.20.

Brent crude rose 7% at settlement, surpassing the $100 a barrel mark for the first time since May, in one of its biggest gains since the start of the war. The rise in crude oil prices is fueling concerns about inflation and the possibility of interest rates remaining high for a longer period. While gold is traditionally seen as a hedge against inflation, it loses its appeal as a non-yielding asset when interest rates are high.

As for other precious metals, spot silver fell 0.7% to $57.29 an ounce but is on track for a 2.5% weekly gain. Platinum dropped 1.3% to $1,579.49, and palladium declined 1.5% to $1,237.50, both heading for weekly losses.