International gold prices slightly rebounded on Friday, yet are set to record a third consecutive week of decline, influenced by the strengthening dollar and revised interest rate expectations, which have significantly weakened gold's safe-haven appeal.
Gold futures plummeted by 5.9% the previous day to $4,605.7 per ounce, down approximately 18% from the January peak of $5,626.8. In the same period, silver saw an even larger drop, declining by 8.2% in a single day, marking seven consecutive days of losses.
Analysts point out that the conflict in the Middle East has driven up oil prices and reinforced inflation expectations, prompting the market to reprice monetary policy trajectories. The high interest rate environment diminishes the allure of gold as a non-yielding asset.
Additionally, there has been a shift in fund flows, with some investors choosing to cash in previous gains and pivot towards bonds with rising yields.
