Gold Price Recovers from 2% Weekly Decline Amid Dollar Strength

Gold prices have recovered slightly after falling around 2% this week due to renewed pressure from the US dollar and Treasury yields.

The stronger US dollar has made gold more expensive for buyers using other currencies, limiting upside attempts. Additionally, hawkish comments from Fed officials reinforced expectations that interest rates may stay high for longer, which typically reduces demand for non-yielding assets like gold.

Despite the slight recovery, traders are watching whether gold can reclaim key resistance levels or risk another decline towards support levels. The short-term trend remains cautious, with XAUUSD consolidating around $4,280 after failing to sustain momentum above the $4,295 resistance zone.