Global gold prices fell on Friday as renewed concerns over US monetary policy and shifting geopolitical conditions weighed on investor sentiment.

According to international reports, spot gold dropped by 0.5 percent to $4,193.58 per ounce. On a weekly basis, the metal is heading for a decline of around 3.1 percent, marking a notable loss for investors in the safe-haven asset.

Market analysts say rising concerns over inflation trends and the possibility of further interest rate hikes by the US Federal Reserve have reduced demand for gold. A stronger dollar and higher yields typically make gold less attractive, leading investors to shift toward interest-bearing assets.

At the same time, geopolitical developments, including tensions between the United States and Iran, along with speculation about possible diplomatic progress, have added volatility to global commodity markets. While conflict usually supports gold prices, hopes of a potential agreement have reduced safe-haven buying.

Experts warn that if the Federal Reserve signals a continued tight monetary policy stance, gold could come under further pressure. Some analysts suggest prices may even drift closer to the $4,000 level if bearish momentum continues.

Other precious metals also remained under pressure, reflecting broader weakness across commodity markets. Overall, uncertainty continues to dominate global trading conditions, with investors closely watching upcoming economic data and central bank signals.