Gold heads for biggest weekly loss in six weeks amid inflation fears

SINGAPORE, July 17 (QNA) - Gold is heading for its biggest weekly loss in six weeks, affected by escalating tensions between the United States and Iran and rising oil prices, which increased inflationary pressures and strengthened expectations of a US interest rate hike. Spot gold rose 0.5 percent in Asian markets to $3,988.20 per ounce, after earlier hitting its lowest level since July 1, while US gold futures for August delivery settled at $3,992. Spot gold has lost 3.2 percent since the start of the week, its biggest weekly drop since early June, surpassing the support it received from US inflation data for June, which came in below expectations. Gold, which yields no return, typically struggles in a rising interest rate environment, as investors are attracted to assets that offer better returns. Among other precious metals, silver fell 0.5 percent in spot trading to $55.22 per ounce, platinum dropped 0.7 percent to $1,605.62, and palladium declined 0.4 percent to $1,244.86. All three metals are heading for a weekly loss.