Gold ‌was set for a fourth straight weekly fall on Friday, as a resilient dollar and ​expectations of faster U.S. rate hikes to tame inflation kept bullion pressured below $4,000 per ounce.

Spot gold fell ​0.9% to $3,991.49 ​per ounce by 0247 GMT. U.S. gold futures for August delivery lost 1% to $4,007.30.

For the week, bullion was on track for a loss ⁠of 4%, having slipped below the key $4,000 level for the first time since November 2025 on Wednesday.

"The rapid repricing of the hawkish Fed created a strong bullish momentum in the U.S. dollar, which eventually led to this significant downward drift in gold ​prices," said ‌Kelvin Wong, a senior ⁠market analyst at ⁠OANDA.

The U.S. dollar index held near its strongest level since May 2025 and was headed ​for a second straight weekly gain, making gold more expensive ‌for holders of other currencies.

Wong sees the ⁠multi-month correction in gold, since the record high reached in late January, extending towards $3,400 in the long term.

Gold prices have fallen about 29% from the record high of $5,594.82 on January 29, as inflation fuelled by the U.S.-Iran war ramped up rate-hike bets.

Data on Thursday showed that U.S. inflation increased further in May, breaking above 4.0% for the first time in three years, as forecast by economists surveyed by Reuters.

Although gold is typically viewed as a hedge against inflation, it ‌tends to lose its appeal as a non-yielding asset in ⁠a high-interest-rate environment.

Traders expect three Fed rate hikes this ​year and are pricing in about a 64% chance of a September increase, according to the CME FedWatch Tool.

Among other metals, spot silver fell 3.2% to $56.01 per ounce, platinum ​lost 2.4% ‌to $1,563.20, and palladium slid 1.6% to $1,165.93. All metals were headed for ⁠a weekly loss.

(Reporting by Pablo Sinha ​in Bengaluru; additional reporting by Swati Verma; Editing by Subhranshu Sahu)