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Gold prices fell by approximately 1.69% on Friday, extending losses for the third consecutive week as the U.S. Dollar (USD) gained strength. The decline was driven by market expectations that the Federal Reserve (Fed) will maintain higher interest rates for an extended period, which has boosted USD demand and Treasury yields. At $4,147 per ounce, XAU/USD faces downward pressure as investors shift toward USD assets amid tighter monetary policy. The Fed's rate-hold stance has reinforced the Dollar's dominance, undermining gold's appeal as an inflation hedge. Traders are now monitoring upcoming Fed statements and economic data for clues on the timeline for rate cuts, which could reverse the current bearish trend. For now, the USD's strength remains a critical factor for gold's trajectory.
