Gold prices are on track for a third consecutive weekly gain, although prices dipped slightly on Friday due to profit-taking ahead of the weekend.

As of 3:59 p.m. Saudi time, spot gold was down 0.3% to $3,034.02 an ounce, while U.S. gold futures eased 0.1% to $3,040.90. For the week, bullion has increased by 1.7%.

The rise in gold prices is largely attributed to ongoing safe-haven demand amidst growing geopolitical and economic uncertainties, along with expectations of a potential rate cut by the U.S. Federal Reserve later this year.

Peter Grant, vice president and senior metals strategist at Zaner Metals, noted that the price movement indicates a solid underlying demand primarily driven by trade concerns and geopolitical risks.

This year, gold has reached 16 record highs, with four instances breaching the $3,000 mark and hitting an all-time peak of $3,057.21 per ounce on Thursday.

Market participants are increasingly turning to gold as a stable investment amidst instability in global markets.

In parallel developments, U.S. President Donald Trump plans to implement new reciprocal tariff rates starting April 2. The Federal Reserve maintained its benchmark interest rate, but hinted at the possibility of two quarter-percentage-point cuts in the upcoming months.

Market data indicates that traders are anticipating 71 basis points of easing from the Fed, with at least two expected rate reductions of 25 basis points each, and a cut in July is fully priced in.

Geopolitical events have contributed to market volatility, notably Israel's announcement of increased military action against Hamas in Gaza, effectively ending a two-month ceasefire and launching intensified air and ground operations.

In related market movements, silver prices saw a decline of 1.4% to $33.08 an ounce, platinum decreased by 1% to $974.90, and palladium fell by 0.6% to $946.

All three metals are positioned for weekly losses.