Gold prices rose on Friday on technical buying, but ‌were headed for a third consecutive weekly decline, pressured by a firm U.S. dollar and as a hawkish ​U.S. Federal Reserve dampened hopes for near-term interest rate cuts.              

Spot gold rose 1.5% to $4,717.49 per ounce as of ​0530 GMT, rebounding ​from a near two month low hit in the previous session.              

U.S. gold futures for April delivery rose 2.4% to $4,716.80.      

"Gold held some important technical supports in the weekly time frame ⁠and gold may see a recovery to the level where it broke down, around $4,800," said Nicholas Frappell, global head of institutional markets at ABC Refinery.              

However, bullion has lost over 6% so far this week. Spot gold has fallen more than 10% since the U.S.-Israeli strike on Iran on ​February 28.              

The dollar ‌has emerged ⁠as one of the ⁠clearest "safe-haven" winners, strengthening over 2% so far this month. Meanwhile, the Fed kept rates steady on Wednesday, echoing ​major developed market central banks, and indicated that inflation could rise.              

Interest ‌rate futures show traders see little chance of a Fed ⁠reduction this year, according to the CME's FedWatch tool.  

Gold is considered an inflation hedge, but high interest rates tamp down on demand as yield-bearing assets turn more attractive, while a stronger dollar makes the bullion more expensive for holders of other currencies.              

"After notable underperformance during the Middle East conflict, participants were poised to sell rather than buy gold and were listening out for a reason to confirm their sentiments," Frappell said.             

Oil prices stayed above $105 a barrel after touching $119 on Thursday, as Iran attacked energy targets overnight in the Middle East.              

U.S. President Donald Trump has ‌told Israel not to repeat its strikes on Iranian natural gas ⁠infrastructure while Treasury Secretary Scott Bessent said the U.S. may soon ​remove sanctions from Iranian oil stranded on tankers.              

Meanwhile, gold discounts in India eased this week from near decade-high levels hit last week, helped by festive buying and a sharp correction in prices, while premiums ​in China ‌declined as physical demand softened.           

Spot silver gained 1.2% to $73.75 per ounce. Spot platinum ⁠rose 2.1% at $2,012.95 and palladium added 2.2% ​to $1,478.78.              

(Reporting by Noel John in Bengaluru; Editing by Sumana Nandy and Janane Venkatraman)