Gold weakened significantly this week. Gold prices fell an additional 3.5% on Friday to $4,488 per ounce; calculated on a weekly basis, the cumulative decline was approximately 11%, marking the largest single-week drop since 1983. Market participants believe that the ongoing uncertainty stemming from geopolitical tensions in the Middle East, combined with shifts in macroeconomic expectations, are jointly putting pressure on gold prices.

Meanwhile, investor expectations have intensified that the Federal Reserve may not cut rates this year. Federal Reserve Chair Powell indicated that inflation could rise, further reinforcing market expectations for a prolonged high-interest-rate environment, which in turn suppresses the appeal of non-yielding assets like gold.