Gold prices maintained their upward trajectory last week, marking a seventh consecutive weekly gain despite a 1% pullback on Friday as investors took profits. The precious metal closed at $2,896.10 per ounce, still showing a 0.8% weekly increase after touching a fresh high of $2,942.70 on Tuesday.

December gold futures also showed strength, falling 1.5% to settle at $2,900.70. Market analysts attributed the volatility to technical factors, with Peter Grant, senior metals strategist at Zaner Group, noting that Tuesday's failure to break through record highs created a potential "double top" pattern that prompted some weekend profit-taking.

"The technical picture played a significant role in last week's price action," Grant observed. "The inability to sustain Tuesday's breakout led to predictable profit-taking ahead of the weekend."

Despite the short-term fluctuations, the broader trend remains decidedly bullish. Alex Ebkarian, COO of Allegiance Gold, highlighted multiple factors driving demand: "We're seeing a perfect storm of tariff policies, inflationary pressures, and dollar weakness pushing investors toward gold. There's been a notable shift from paper gold to physical holdings as investors seek tangible assets."

The market received additional support Thursday when President Trump announced plans for reciprocal tariffs on all countries that impose duties on U.S. goods. This move heightened concerns about potential inflation, reinforcing gold's appeal as a hedge against both price pressures and geopolitical uncertainty.

Economic data provided mixed signals, with January retail sales posting their largest drop in nearly two years - suggesting potential first-quarter slowdown - while unemployment claims declined, indicating labor market resilience. Market participants now anticipate the Federal Reserve may delay rate cuts until September due to persistent inflation.

Ebkarian also noted spillover effects in other precious metals: "Silver demand continues its annual growth trajectory while supply tightens. As gold becomes less accessible to retail investors, we're seeing increased interest in silver as a more affordable alternative."

With gold maintaining its upward channel and macroeconomic uncertainties persisting, analysts suggest the precious metals market warrants close attention from investors seeking portfolio protection in volatile times.