On Friday, gold prices experienced volatility, swinging between gains and losses as the dollar appeared poised for its strongest weekly performance in four months. This development is largely attributed to robust economic data emerging from the United States and increasing expectations for monetary tightening, which have been further complicated by escalating tensions between the U.S. and Iran. The gold price in the spot market reached $5,030.45 per ounce before gradually declining in response to the dollar's rally, which hit its highest level in almost a month.

As the trading day progressed, gold experienced a slight decrease of 0.1%, dropping to $4,995.91 per ounce by 01:49 GMT. However, the precious metal saw a rebound, climbing back to $5,015.25 at the time this report was compiled. Meanwhile, U.S. gold futures for April delivery increased by 0.3% to $5,013.60, as market participants awaited critical data on personal consumption expenditures in the U.S., a key metric for inflation as per the Federal Reserve's preferences.

The dollar index, which gauges the performance of the U.S. dollar against a basket of other major currencies, is marking a weekly gain of over 1%, the highest since October. This strengthened dollar highlights investor confidence in the U.S. economy amidst international tensions and could have significant implications for commodity prices and global markets, particularly in how they respond to fluctuating inflation rates and interest rate expectations set by the Federal Reserve.