Gold rebounds above $3,900 but remains on track for over 4% weekly decline

Gold futures climbed back above $3,900 per ounce on Friday but remained on track for a weekly loss of more than 4%, pressured by a stronger US dollar and rising Treasury yields as markets increasingly priced in a more aggressive Federal Reserve tightening cycle. Hotter-than-expected US consumer inflation and hawkish remarks from Fed officials, including suggestions of a possible 50-basis-point rate hike, reinforced expectations of further monetary tightening. The US dollar index held above 103 after advancing for three consecutive sessions to its highest level since April 2025, while investors turned their attention to US PPI data for fresh inflation signals. On MCX, December delivery gold futures traded 0.4% higher at Rs 1,36,779 per 10 grams.

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