Gold Declines, Set to Register Weekly Losses

Gold bars

Gold prices fell during Friday's trading, heading to record the deepest weekly loss in six weeks, as clashes between the United States and Iran pushed oil prices up, increasing inflationary pressures and boosting expectations of a US interest rate hike.

Meanwhile, the dollar index, which measures the performance of the US currency against a basket of six major currencies, stabilized, trading at 100.78 points.

And Lorie Logan, President of the Dallas Fed, became the first member to publicly call for a rate hike under the leadership of central bank chief Kevin Warsh, while Vice Chair of the Fed Philip Jefferson expressed openness to tightening policy if there is no tangible improvement in inflation, according to Reuters.

The yellow metal lost more than 3% of its value this week, its biggest decline since June 1, as ongoing tensions in the Middle East overshadowed the support the metal received from US data showing a slowdown in inflation this week.

Data from the CME FedWatch tool indicates that markets are currently pricing in a 73% probability of the Federal Reserve raising interest rates in December.

Change in prices of some precious metals in futures and spot markets

Metal

Price ($/oz)

Change ($)

Change (%)

Gold (August delivery)

3981.90

(10.20)

(%0.25)

Gold (Spot)

3983.01

+6.51

+%0.15

Silver (September delivery)

55.32

(0.87)

(%1.55)

Silver (Spot)

55.14

(0.39)

(%0.70)

Platinum (Spot)

1594.80

(28.47)

(%1.75)

Palladium (Spot)

1244.04

(10.32)

(%0.80)

* As of 08:24 AM Mecca time.

Gold prices and news

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