Gold Falls as Fed Hawks Support Strong Dollar

Gold prices came under pressure on Friday after Federal Reserve Chair Kevin Warsh signaled that policymakers remain focused on returning inflation to the 2% target.

This dampens expectations for an imminent easing in monetary policy, supporting the US dollar and weighing on gold prices.

The comments reinforced a higher-for-longer rates narrative, which tends to weigh on non-yielding assets such as gold.

Gold's near-term performance will be shaped by upcoming US inflation and labour data, central bank buying, and geopolitical risks.

While central bank buying and geopolitical risks provide underlying support for gold, a stronger dollar and higher-for-longer rate expectations could limit its upside momentum.