Gold prices are set to close the week with their largest decline in six weeks, despite a modest rebound on Friday.
The precious metal has retreated from recent highs as market participants recalibrate risk models in response to escalating geopolitical tensions.
The selling pressure reflects a shift in investor sentiment, where the inflationary impact of rising energy costs is outweighing the traditional safe-haven appeal of gold.
The primary driver of the repricing is the renewed conflict between the United States and Iran.
The escalation has pushed crude oil prices higher, reigniting fears that energy-driven inflation could persist.
This dynamic has strengthened market expectations that central banks will keep interest rates high for longer to combat price pressures.