For the week, bullion was on track for a loss of 4%, having slipped below the key $4,000 level for the first time since November 2025 on Wednesday (June 24,2026).
Gold was set for a fourth straight weekly fall on Friday, as a resilient dollar and expectations of faster US rate hikes to tame inflation kept bullion pressured below $4,000 per ounce.
Spot gold fell 0.9 per cent to $3,991.49 per ounce by 0247 GMT. US gold futures for August delivery lost 1 per cent to $4,007.30.
For the week, bullion was on track for a loss of 4 per cent, having slipped below the key $4,000 level for the first time since November 2025 on Wednesday.
“The rapid repricing of the hawkish Fed created a strong bullish momentum in the US dollar, which eventually led to this significant downward drift in gold prices,” said Kelvin Wong, a senior market analyst at OANDA.
The US dollar index held near its strongest level since May 2025 and was headed for a second straight weekly gain, making gold more expensive for holders of other currencies.
Wong sees the multi-month correction in gold, since the record high reached in late January, extending towards $3,400 in the long term.
Gold prices have fallen about 29 per cent from the record high of $5,594.82 on January 29, as inflation fuelled by the US-Iran war ramped up rate-hike bets.
Data on Thursday showed that US inflation increased further in May, breaking above 4.0 per cent for the first time in three years, as forecast by economists surveyed by Reuters.
Although gold is typically viewed as a hedge against inflation, it tends to lose its appeal as a non-yielding asset in a high-interest-rate environment.
Traders expect three Fed rate hikes this year and are pricing in about a 64 per cent chance of a September increase, according to the CME FedWatch Tool.
Among other metals, spot silver fell 3.2 per cent to $56.01 per ounce, platinum lost 2.4 per cent to $1,563.20, and palladium slid 1.6 per cent to $1,165.93. All metals were headed for a weekly loss.
Published on June 26, 2026
