Gold prices fell sharply on Friday and were on track for a third weekly loss amid expectations that central banks including the Federal Reserve will raise interest rates to curb inflation. Spot gold fell a little over 1 percent to $4,164.49 an ounce, while U.S. gold futures were down 1.5 percent at $4,181.50. A stronger dollar due to uncertainty over the U.S.-Iran peace deal also dented safe-haven demand for bullion. The dollar held near a one-year high and bond yields edged up after the U.S. Federal Reserve projected at least one quarter-point rate hike this year. On the geopolitical front, optimism over the U.S.-Iran peace agreement faded due to ongoing fighting in Lebanon, with the Swiss Foreign Ministry saying U.S. talks with Iranian negotiators have been postponed.