Gold prices decline, heading for weekly loss

Gold bars

Gold prices declined during Friday trading, heading for a weekly loss, amid growing fears that escalating military tensions between the United States and Iran could fuel inflation rates globally, which may push the Federal Reserve to stick to a hawkish monetary policy path.

Meanwhile, the dollar index, which measures the performance of the US currency against a basket of six major currencies, fell by 0.15% to trade at 100.77 points.

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

Metal

Price ($/oz)

Change ($)

Change (%)

Gold (August delivery)

4125.70

(-15.10)

(-0.35%)

Gold (spot)

4114.40

(-9.24)

(-0.20%)

Silver (September delivery)

60.74

(-0.01)

Silver (spot)

60.25

+0.29

+0.50%

Platinum (spot)

1635.04

+19.03

+1.20%

Palladium (spot)

1269.18

+15.73

+1.25%

* As of 08:17 a.m. Mecca time.

The attacks by Iranian armed forces on targets belonging to the United States following US strikes on Iran's southern and eastern coastal provinces fueled inflation concerns and strengthened the likelihood of the Fed raising interest rates this year.

According to the FedWatch tool from the CME Group, expectations indicate that markets are currently pricing in a 63% probability of a rate hike at the next September meeting, compared to about 54% a week ago.

Gold prices and news

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