Gold Holds Near $4,000 as Market Heads for Fourth Straight Weekly Loss
Gold prices hovered near the key psychological level of $4,000 per ounce on Friday, putting the precious metal on track for a fourth consecutive weekly decline as investors weighed a stronger U.S. dollar, expectations of tighter monetary policy, and easing demand for traditional safe-haven assets.
Spot gold traded close to the $4,000 mark after falling sharply earlier this week, with bullion coming under pressure from the dollar’s continued strength and growing expectations that the U.S. Federal Reserve could maintain higher interest rates for longer. Higher borrowing costs typically reduce the appeal of non-yielding assets such as gold.
Market sentiment has also been influenced by improving risk appetite across financial markets, prompting some investors to rotate away from defensive assets. Despite the recent weakness, analysts believe central bank purchases and continued geopolitical uncertainty could help prevent a deeper decline in bullion prices.
The recent selloff follows several downward revisions to gold price forecasts by major financial institutions. Earlier this month, Citi lowered its three-month gold target to $4,000 per ounce, citing expectations of tighter monetary policy and a stronger U.S. dollar.
Investors are now closely monitoring upcoming U.S. economic data and inflation indicators for fresh signals on the Federal Reserve's policy path. Any indication that interest rates will remain elevated could extend pressure on gold prices, while softer economic data may revive demand for the metal as a safe-haven investment.
Although gold has retreated significantly from the record highs reached earlier this year, market analysts continue to view the long-term outlook as supported by structural demand from central banks, geopolitical uncertainty, and portfolio diversification strategies.