Gold Set for Weekly Decline as Haven Demand Fades

​Gold prices are on track for their first weekly decline this month, reflecting a shift in sentiment as Middle East tensions eased slightly and the Federal Reserve warned of persistent inflation that could delay interest rate cuts.

Spot gold dipped 0.6% to $3,351.53 an ounce, and is down more than 2% on the week, according to Friday’s early London trading data. The move comes after a string of gains that had pushed gold near its all-time high above $3,500.

Markets reacted to news that President Trump is likely to wait two more weeks before deciding whether to join Israel’s military actions against Iran, reducing fears of an immediate escalation that would have fueled haven buying.

At the same time, Fed Chair Jerome Powell flagged inflation risks tied to Trump’s tariff policies, which could complicate the Fed’s ability to cut rates anytime soon. Since gold doesn’t pay interest, a prolonged high-rate environment makes it less attractive relative to yield-bearing assets.

Still, gold remains up over 25% year-to-date, driven by broader uncertainty, central bank demand, and investor concerns over debt, geopolitics, and currency debasement.

Adding to the pressure, investors appear to be shifting some interest to platinum, which remains cheaper and is gaining traction as an alternative safe-haven play.

Wall Street remains divided on gold’s next move. Goldman Sachs has reaffirmed its forecast of $4,000 an ounce by next year, while Citigroup sees the metal dipping below $3,000 by 2026—a wide divergence that reflects how uncertain the macro backdrop still is.

​Bottom line: Gold’s shine has dimmed slightly this week as tensions cool and inflation concerns reassert themselves. But with global risks still elevated, any pullback could prove temporary in a market driven by fear, policy, and long-term demand.