Gold prices extended their gains on Friday, breaking above $4,000 per ounce as the latest US inflation data tempered expectations for Federal Reserve interest rate hikes. The precious metal has experienced a week of significant volatility, having earlier touched its lowest level since November.

Spot gold rose as much as 1.7% on Friday, building on gains from the previous trading session. Despite this rally, gold is still on track for a fourth consecutive weekly decline, which would mark its longest losing streak since August 2023. The pressure on gold has come from a stronger US dollar and growing market anticipation that the Fed will adopt a more hawkish stance to combat inflation. Rising interest rates typically reduce the appeal of non-yielding assets like gold.

The metal recovered from earlier losses on Friday, which coincided with a sharp sell-off in technology stocks driven by concerns over artificial intelligence-related trading. The week's intense stock market swings prompted some investors to sell gold to cover losses elsewhere in their investment portfolios.

As of 12:15 p.m. New York time, spot gold was up 1.6% at $4,091.63 per ounce. Silver gained 2.6% to $59.37 per ounce, while platinum and palladium prices also moved higher.