Gold prices face mounting pressure as they head toward a third consecutive weekly decline, weighed down by a strengthening dollar and a hawkish Federal Reserve that has eliminated expectations for near-term rate cuts.

Gold prices face mounting pressure as they head toward a third consecutive weekly decline, weighed down by a strengthening dollar and a hawkish Federal Reserve that has eliminated expectations for near-term rate cuts. Spot gold edged up marginally to $4,657.50 per ounce Friday but remains down over 7 percent for the week. The firm dollar makes bullion more expensive for international buyers, while elevated interest rates continue to suppress demand for the non-yielding asset. Meanwhile, geopolitical tensions in the Middle East have pushed oil above $105 per barrel following Iranian attacks on energy infrastructure, adding inflationary pressures that complicate the gold outlook. Central banks signaled readiness to tighten policy further if energy-driven inflation persists. Interest rate futures indicate traders see minimal probability of Fed rate reductions this year.