Gold Extends Losses to One-Week Low Near $4,120 on Fed Tightening Bets

Gold prices extended their decline into a third straight session on Friday, slipping to a one-week low near $4,121. The move comes as expectations for further Federal Reserve tightening gain traction, pressuring the non-yielding asset.

The yellow metal is on track to close a third consecutive weekly loss, reflecting persistent headwinds from higher interest rate expectations. Traders are now pricing in a higher probability of additional rate hikes following recent US economic data.

If the Fed signals a more aggressive stance, gold could face further downside. However, any reversal may occur if central bank rhetoric softens or safe-haven demand rebounds.