The U.S. dollar surged to a near two-month high on Friday, and posted gains for the week, helped by a lack of progress in peace efforts in the Middle East and strong labor market data that strengthened expectations for interest rate hikes.  

At 16:36 ET (20:36 GMT), the U.S. dollar index, which tracks the greenback against a basket of six major peers, was up 0.7% to 100.06, its highest level since early April. For the week, the dollar was on pace to firm by 1.2%.

Oil prices slipped on Friday after operations at a key port in Oman returned to normal following a reported drone strike. However, benchmark crude contracts were on track to snap a two-week losing streak as hopes for a pace deal in the Middle East took a major hit. 

Brent crude futures expiring in August, the global oil benchmark, fell by 2.3% to settle at $92.89 a barrel, while U.S. West Texas Intermediate crude futures expiring in July declined 3% to settle at $90.25 a barrel.

Gold prices sank on Friday and were on track for a weekly decline, after a strong U.S. employment report bolstered wagers that the Federal Reserve could lift interest rates later this year. The U.S. dollar strengthened in reaction to the jobs data, while Treasury yields soared as traders dumped bonds. 

At 16:50 ET (20:50 GMT), spot gold was down 3.3% to $4,325.96/oz, while gold futures dropped 3.4% to $4,352.57/oz.

Gold accounted for 27% of foreign reserves held by central banks worldwide at the end of 2025, according to the European Central Bank. This marks an increase from 20% a year earlier.

The precious metal’s share exceeded that of U.S. Treasurys, which stood at 22%, and the euro at 15%. Other dollar-based reserves made up 20% of central bank holdings.