Gold prices saw a slight uptick on Friday, driven by technical buying, but remained on track for their third consecutive weekly loss. This downturn is largely attributed to a robust U.S. dollar and the U.S. Federal Reserve’s persistent hawkish stance, which has diminished expectations for imminent interest rate cuts. The precious metal’s value has been under pressure as higher interest rates make alternative investments more appealing.

Spot gold experienced a 1.1% increase, reaching $4,700.97 per ounce by early trading on Friday. This rebound followed a dip to a nearly two-month low in the preceding session. U.S. gold futures for April delivery also climbed, showing a 2.1% gain to $4,701.30. Despite this brief recovery, the overall trend for the week has been downward, with bullion losing over 6% so far.

Analysts suggest that gold has found some stability around key technical support levels, potentially leading to a recovery toward the $4,800 mark. However, market sentiment appears geared towards selling rather than buying, particularly after gold’s notable underperformance during recent Middle Eastern tensions. Investors are closely watching for further signals that could confirm this bearish outlook.

The U.S. dollar has emerged as a significant safe-haven asset, strengthening by over 2% this month and further impacting gold’s appeal. Meanwhile, the Federal Reserve held interest rates steady this week, and indications point to inflation potentially rising, leading traders to anticipate minimal chances of a rate reduction this year. This environment makes gold, typically an inflation hedge, less attractive.

In broader market movements, oil prices remained above $105 a barrel following recent escalations in the Middle East. Other precious metals also saw gains, with spot silver up 1.5%, platinum rising 1.9%, and palladium adding 1.2%. However, gold’s trajectory continues to be heavily influenced by macroeconomic factors and geopolitical events.