Gold Prices Extend Weekly Losses as Strong Dollar and ETF Outflows Pressure Market

SEATTLE (Scrap Monster): Gold prices declined for a fifth consecutive week as easing geopolitical tensions in the Middle East, a stronger U.S. dollar, and heavy ETF selling continued to weigh on the precious metal, said the Weekly Markets Monitor Report published by the World Gold Council (WGC).

The LBMA Gold Price PM settled the week at US$4,072 per ounce, down 1.9% from the previous week. The prices of the yellow metal have declined 6.8% year-to-date.

The renewed peace efforts between the United States and Iran brought slight optimism to the markets worldwide. The economic data pointed to continued resilience in the U.S., while growth improved modestly in the eurozone and Japan. India showed a slight slowdown, while China maintained its benchmark interest rates.

Market sentiment was further influenced by a stronger U.S. dollar and significant global gold ETF outflows, both of which reduced demand for bullion. The prices remained under pressure following expectations that the Federal Reserve could maintain a tighter monetary policy.

Technical indicators suggest gold’s support near US$3,857 per ounce, a key long-term retracement level. Immediate resistance is seen around US$4,221, with stronger barriers between US$4,474 and US$4,499.

Looking ahead, investors will closely monitor upcoming U.S. employment data, manufacturing activity reports, and the Federal Reserve's policy decisions.