The demand for hedging has weakened, and gold prices will experience a weekly decline for the first time this month.

Gate News bot reported that, according to Bloomberg, due to a slight easing of geopolitical tensions in the Middle East, which weakened safe-haven demand, and the Federal Reserve issuing an inflation warning, increasing the likelihood of fewer rate cuts, gold prices are set to record a weekly decline for the first time this month.

On Friday, gold prices approached $3,350 per ounce, falling over 2% this week. A spokesperson for U.S. President Donald Trump stated that he would decide within two weeks whether to join Israel in its attacks on Iran, alleviating concerns about imminent actions that could escalate hostilities, threaten energy flows, and spur inflation.

At the same time, The Federal Reserve (FED) Chairman Jerome Powell pointed out earlier this week that the impact of Trump’s tariff agenda will bring inflation risks. This could make it more difficult for the central bank to lower borrowing costs, which is undoubtedly bearish for gold, as gold is a non-yielding asset that performs better in a low interest rate environment.

Since the beginning of this year, gold prices have still risen by more than a quarter, not far from the historical high of slightly over $3,500 set in April. However, this week there are some signs that, given the high gold prices, investors prefer platinum as a safe-haven asset.

Major investment banks on Wall Street have differing views on whether gold prices can continue their record rise. Goldman Sachs reiterated its forecast that gold prices will reach $4,000 per ounce next year, while Citigroup stated that it expects gold prices to fall below $3,000 by 2026.