Gold Prices Head for Third Weekly Loss Amid Hawkish Fed

Gold prices edged higher on Friday as technical buying provided a floor, though the asset remains on track for its third consecutive weekly decline. This downward trend is driven by a resilient dollar and a hawkish stance from the United States Federal Reserve, which has cooled expectations for near-term interest rate cuts. Spot gold climbed 1.1% to $4,700.97 per ounce, recovering from a recent two-month low, while U.S. gold futures for April delivery rose 2.1% to $4,701.30. Bullion has retreated by more than 6% this week and is down over 10% since the military escalation between Israel and Iran on February 28. Nicholas Frappell, global head of institutional markets at ABC Refinery, indicated that the metal held important technical levels and could see a move back toward $4,800. > Gold held some important technical supports in the weekly time frame and gold may see a recovery to the level where it broke down, around $4,800. The dollar has remained a dominant safe-haven asset, strengthening by more than 2% this month. Meanwhile, the Federal Reserve maintained interest rates this week and signaled that inflation remains a concern, with the CME FedWatch tool showing traders see little chance of a rate reduction this year. While gold is traditionally an inflation hedge, higher interest rates increase the appeal of yield-bearing assets, and a stronger dollar makes bullion more expensive for international buyers. > After notable underperformance during the Middle East conflict, participants were poised to sell rather than buy gold and were listening out for a reason to confirm their sentiments. Energy markets remain volatile, with Brent Crude Oil prices staying above $105 a barrel following Iranian attacks on energy infrastructure. In response to the ongoing tensions, U.S. Treasury Secretary Scott Bessent noted that the administration might remove sanctions on certain Iranian oil and potentially release more crude from the Strategic Petroleum Reserve. Other precious metals also traded higher, with Silver gaining 1.5% to $73.91 per ounce. Platinum rose 1.9% to $2,008.85, while Palladium added 1.2% to trade at $1,463.75.