Gold price weekly decline remained in focus as bullion prices edged higher on Friday, but were still on track for a third consecutive weekly loss, weighed down by a stronger US dollar and expectations that the Federal Reserve may maintain a tighter monetary stance for longer.
Spot gold rose 0.2 percent to $4,657.50 per ounce in early trade, while US gold futures for April delivery gained 1.1 percent to $4,657.90, showing a modest rebound after a sharp sell-off earlier in the week.
Despite the uptick, gold has fallen by more than 7 percent since the beginning of the week, highlighting persistent pressure on the precious metal amid shifting expectations around interest rates.
“Gold is struggling to gain momentum as the dollar remains firm and rate-cut expectations continue to be pushed further out,” said a market analyst tracking global commodities.
The strength of the US dollar has been a key factor weighing on gold prices, as a stronger greenback makes the metal more expensive for holders of other currencies. At the same time, signals from the Federal Reserve suggesting a cautious approach to easing monetary policy have reduced the appeal of non-yielding assets such as gold.
“Higher-for-longer rate expectations are limiting upside in gold, even as safe-haven demand remains present,” the analyst added.
Other precious metals saw marginal gains in early trade. Spot silver rose 0.1 percent to $73 per ounce, while platinum edged up 0.1 percent to $1,972.80 and palladium increased 0.4 percent to $1,452.21, indicating some resilience across the broader metals complex.
Analysts note that while geopolitical uncertainty continues to provide underlying support to gold, macroeconomic factors such as interest rates and currency strength are currently dominating price movements.
“Unless we see a clear shift in Fed policy or a weakening dollar, gold may continue to face downward pressure in the near term,” another analyst said.
With the metal heading toward its third straight weekly decline, investors are likely to remain cautious, closely monitoring US economic data and Federal Reserve signals for clearer direction in the coming weeks.
