Gold prices are heading for a third consecutive weekly decline, with futures under pressure from aggressive Federal Reserve messaging and growing expectations for additional interest rate increases. The metal has struggled to maintain momentum despite easing geopolitical tensions, as investors focus on central bank tightening rather than safe-haven demand.

A interim agreement between the US and Iran provided some optimism for reduced Middle East conflict, yet failed to offset the bearish impact of hawkish Fed rhetoric. Rate-hike bets have intensified following recent central bank communications, putting downward pressure on non-yielding assets like gold. Traders are pricing in further monetary tightening this year.

The disconnect between geopolitical developments and precious metal performance reflects investor prioritization of real yields and dollar strength over traditional safe-haven flows. Gold's inability to capitalize on the peace breakthrough signals that monetary policy concerns currently outweigh geopolitical risks in the minds of market participants. This dynamic favors the US dollar while keeping pressure on bullion.

Commodities desks report steady selling interest from leveraged accounts, with technical indicators pointing to further downside potential. The market remains vulnerable to any additional hawkish signals from Fed officials, though the peace deal offers some floor support if tensions escalate again.