Gold Prices Extend Losing Streak, On Track for Worst Weekly Loss Since 1983

Gold prices continued their downward trend on Friday, marking eight consecutive days of losses and heading toward their steepest weekly decline in over four decades. Spot gold dropped 3.4% to $4,494.44 per ounce, while gold futures fell 2.4% to settle at $4,496.16 per ounce — bringing the metal's weekly loss to 10.4%, the worst single-week performance since early March 1983.

Traditionally viewed as a safe haven during periods of geopolitical instability, gold has struggled to fulfill that role amid ongoing conflict in the Middle East. Instead, investors have been flocking to the U.S. dollar and Treasury yields, both of which have surged as markets grow increasingly concerned about inflation. The dollar's strength has placed significant downward pressure on bullion, a commodity typically priced inversely to the greenback.

A key turning point came Thursday, when several major central banks signaled caution over potential energy-driven inflation following a sharp rise in oil prices to near four-year highs. The Reserve Bank of Australia moved to hike interest rates, while the Federal Reserve, European Central Bank, Swiss National Bank, and Bank of Japan all held rates steady and indicated little likelihood of cuts in the near term. For gold, which generates no yield, a higher-for-longer interest rate environment raises the cost of holding the asset — making it less attractive to investors.

Despite the sharp pullback, some market analysts urge caution before declaring the end of gold's long-term bull run. Russ Mould of AJ Bell pointed out that previous multi-year rallies — including those from 1971 to 1980 and 2001 to 2010 — each weathered significant corrections without reversing their overall upward trajectory. While near-term headwinds remain strong, long-term investors may view the current dip as part of a broader cycle rather than a definitive trend reversal.