Gold prices recorded their first weekly loss in five weeks. Rising oil prices fueled inflation concerns, while higher bond yields and a stronger U.S. dollar also pressured the market.
Spot gold (XAUUSD) traded at $4707.52 on Friday, up $13.43 or 0.29% at 12:32 GMT. Buyers defended the $4644.46 level, but this did not signal a recovery.
Brent Crude Oil jumped about 18% this week, holding above $105 a barrel. Higher oil costs typically lead to higher inflation. This situation suggests the U.S. Federal Reserve may hold interest rates longer, which strengthens the dollar and draws capital to assets offering yields.
Gold currently trades below a long-term pivot at $4744.34. The 50-day moving average at $4870.42 acts as nearby resistance. The market has shown lower highs and lower lows since April 17, indicating selling pressure.
If gold breaks below $4644.46, prices could extend to the long-term 61.8% level at $4541.88. A key value area for buyers is seen between $4495.33 and $4401.84. The 200-day moving average at $4245.95 indicates the long-term trend remains upward, despite current headwinds.