Gold prices were on course for a fourth consecutive weekly decline on Friday as expectations of further US interest rate hikes and a stronger US dollar continued to weigh on investor sentiment, although the precious metal found support above the key US$4,000 an ounce level.
Spot gold was little changed at US$4,027.91 an ounce, while US gold futures for August delivery eased 0.1% to US$4,043.40. Bullion has fallen about 3.2% so far this week after briefly slipping below US$4,000 for the first time since November 2025 on Wednesday.
The latest sell-off followed data showing US inflation accelerated to 4.1% in the 12 months to May, reinforcing expectations that the US Federal Reserve could raise interest rates three more times this year. Markets are currently pricing in around a 64% probability of a rate increase in September.
Kelvin Wong, senior market analyst at OANDA, said, “The rapid repricing of the hawkish Fed created a strong bullish momentum in the U.S. dollar, which eventually led to this significant downward drift in gold prices.”
A firmer US dollar has also reduced the appeal of bullion by making it more expensive for buyers using other currencies, while higher interest rates diminish demand for non-yielding assets such as gold.
Separately, RHB Investment Bank said technical indicators suggest gold may be attempting a short-term rebound after fresh buying interest emerged near the US$4,000 support level. However, it maintained a bearish trading bias, noting that the relative strength index remains below the 50% mark.
The research house said any recovery could test resistance at US$4,400, but failure to hold above US$4,000 may see prices fall further towards US$3,700. It recommended maintaining short positions until gold breaks above the US$4,400 resistance level.
Other precious metals also remained under pressure, with silver, platinum and palladium all heading for weekly losses.
