Gold Steadies Below $4,000 as Hawkish Fed Outlook Caps Recovery

Gold (XAU/USD) is trading near the flat line on Friday, holding below the $4,000 level. The precious metal is struggling to gain traction as a hawkish Federal Reserve outlook and rising oil prices weigh on sentiment.

Oil's advance has reignited inflation fears, which in turn supports expectations that the Fed may need to hike rates further. This environment typically pressures non-yielding assets like gold.

Without a clear catalyst, gold remains range-bound as traders assess the next policy moves from the Fed. The recovery from recent lows appears capped for now.