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Gold prices traded in a narrow range on Friday caught between expectations of aggressive U.S. interest rate increases and jitters over high inflation and the economic fallout of the Ukraine crisis.

Spot gold XAU= ticked 0.1% lower to $1,931.00 per ounce by 1114 GMT, but was up 0.3% for the week. U.S. gold futures GCv1 eased 0.1% to $1,935.80.

"On one side we have geopolitical risks generated by the war in Ukraine and rising inflation offering support to the precious metal ... on the other side we have the Federal Reserve's increasingly hawkish stance," said ActivTrades senior analyst Ricardo Evangelista.

"Until one of these factors gains clear preponderance over the other, gold prices are likely to remain within the current range."

Earlier in the day, the dollar index =USD hit its highest since May 2020, bolstered by minutes of the Fed's March policy meeting that showed "many" policymakers were prepared to raise rates in half-percentage-point increments in coming meetings to curb inflation. USD/ (Full Story)

The benchmark U.S. 10-year Treasury yield US10YT=RR touched a three-year high. US/

Gold is highly sensitive to rising U.S. interest rates and Treasury yield, which increase the opportunity cost of holding the non-yielding bullion, while boosting the greenback in which it is priced.

Meanwhile, Russia gave the most sombre assessment yet of its invasion of Ukraine, describing the "tragedy" of mounting troop losses and the economic hit from Western sanctions. (Full Story)

"The opposing forces of inflation and rising rates will likely be the strongest influences on gold in the second quarter," the World Gold Council said in a report.

"The post-COVID economic recovery and supply side disruptions, which have been exacerbated by the Russia–Ukraine war, will likely keep inflation higher for longer."

Spot silver XAG= was flat at $24.58 per ounce.

Palladium XPD= was 1% higher at $2,256.06 per ounce and platinum XPT= eased 0.2% to $961.01. Both metals were set for a fifth-consecutive weekly loss.