Spot gold prices declined 1.5% to $3,957.74 per ounce, putting the precious metal on track for a fourth consecutive monthly decline.
The sell-off reflects growing market conviction that the Federal Reserve may need to raise rates or hold them steady for longer, dampening the appeal of non-yielding assets.
The World Gold Council had previously raised its 2026 target to $4,100, citing shifting sentiment, but recent price action suggests that optimism is facing headwinds.
Gold and silver prices retreated further on Friday, extending a multi-day period of weakness across global bullion markets.
The decline marks another step down for precious metals, which have faced persistent selling pressure amid a stronger dollar and rising real yields.
This latest drop follows a period of heightened volatility, with investors reassessing safe-haven demand against macroeconomic data.
The World Gold Council had previously raised its 2026 target to $4,100, citing shifting sentiment, but recent price action suggests that optimism is facing headwinds.
Traders are now watching for signs of stabilization near key support levels.
Any further weakness could trigger additional technical selling, while a rebound would require a clear shift in Fed policy expectations or renewed geopolitical risk premiums.