Gold Prices Slip Toward Second Weekly Loss Amid Strong Dollar

Gold prices declined on Friday and were headed for a second straight weekly fall as a stronger U.S. dollar and persistent inflation concerns dampened investor sentiment. Spot gold slipped 0.5% to $5,052.15 per ounce and was down more than 2% for the week, while U.S. gold futures for April delivery settled 1.3% lower at $5,061.70. Analysts noted that rising inflation expectations linked to geopolitical tensions have reduced hopes of near-term interest rate cuts.

Market participants said bullion prices have weakened since the escalation of the Iran conflict, with the dollar hovering near four-month highs, making gold more expensive for holders of other currencies. Expectations of tighter monetary policy also pressured prices, as higher interest rates reduce the attractiveness of non-yielding assets like gold. Strong U.S. consumer spending data further reinforced views that the Federal Reserve may delay easing rates.

Meanwhile, partial resumption of flights from Dubai helped restart gold flows from one of the world’s key trading hubs. Other precious metals also recorded losses, with silver falling 3.3%, platinum dropping 4%, and palladium declining 2.5%, all set to end the week in negative territory amid ongoing market uncertainty.

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