Gold prices continued to slide on Friday and are now heading toward a fourth straight week of losses as a stronger US dollar and growing expectations of higher interest rates weighed on the market.
Spot gold fell 0.9% to $3,991.49 per ounce, while US gold futures for August delivery dropped 1% to $4,007.30 per ounce.
The precious metal is set to finish the week down nearly 4%. Earlier this week, gold fell below the $4,000 mark for the first time since November 2025, highlighting the pressure facing the market.
Analysts say the main reason for the decline is the growing belief that the US Federal Reserve may continue raising interest rates to fight inflation. Higher interest rates typically make gold less attractive because the metal does not generate income like bonds or savings accounts.
Kelvin Wang, a senior market analyst at OANDA, said expectations of tighter US monetary policy have strengthened the dollar, which has added more pressure on gold prices.
The US dollar index remained close to its highest level since May 2025 and is on track for a second consecutive weekly gain. A stronger dollar makes gold more expensive for buyers using other currencies, which can reduce demand.
Wang also believes the correction that began after gold reached record highs in January may continue. He expects prices could eventually fall toward the $3,400-per-ounce level over the longer term.
Since hitting a record high of $5,594.82 per ounce on January 29, gold has lost nearly 29% of its value.
Recent US economic data has added to concerns. Inflation continued rising in May and moved above 4% for the first time in three years. The stronger inflation figures have increased expectations that the Federal Reserve will raise interest rates further in the coming months.
Market participants are now expecting as many as three US rate hikes this year, with many investors believing the first increase could come in September.
Other precious metals also moved lower on Friday. Silver fell 3.2% to $56.01 per ounce, platinum dropped 2.4% to $1,563.20 per ounce, and palladium declined 1.6% to $1,165.93 per ounce.
All three metals are also on track to end the week in negative territory as investors continue to react to the stronger dollar and changing interest rate outlook.
