Forex Pros — Last week saw gold prices slump to a one-week low on Friday, as a broadly stronger U.S. dollar and lower oil prices reduced the appeal of the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for August delivery settled at USD1,532.05 a troy ounce by close of trade on Friday, shedding 0.7% over the week .

It earlier fell to USD1,525.75 a troy ounce, the lowest price since June 3.

The U.S. dollar gained sharply on Friday as concerns over Greece’s sovereign debt crisis and mounting fears over global economic growth drove investors towards the greenback.

The dollar index, which tracks the performance of the greenback versus a basket of six other major currencies, was up 0.87% on Friday to settle at 75.25, the highest since May 27. On the week, the index gained 1.4%.

A stronger dollar saps demand for raw materials as an alternative investment and makes metals priced in the currency more expensive in terms of other monies.

Meanwhile, crude prices fell below USD99 a barrel on Friday as Saudi Arabia reportedly plans to increase production, diminishing the precious metal’s appeal as a hedge against oil-led inflation.

Swiss banking giant UBS raised its three-month gold forecast to USD1,600 from USD1,400, while cutting its one-month forecast to USD1,475 from USD1,500. There may be a “pullback over the summer months; though any drops” will be short-lived,” the bank said in a report on Friday.

On Wednesday, industry research group GFMS said that gold’s longer-term price direction hinges on the direction of U.S. monetary policy and the future of the Federal Reserve’s USD600 billion bond-buying program, known as quantitative easing, which is due to end in June.

“The market is at a loss. We need to wait for the verdict on whether there will be further quantitative easing from the Fed to get a clear sense of the future direction,” the industry group said.

Gold prices have been trading in a range of USD1,530 to USD1,550 this week. The Fed’s next Open Market Committee meeting is scheduled for June 21 and 22.

Elsewhere, silver for July delivery traded at USD36.17 a troy ounce by close of trade on Friday, dipping 0.2% over the week, while copper for July delivery traded at USD4.040 a pound, dropping 2.1% over the week.